A report released on April 22 from the U.S. Government Accountability Office (GAO) in Washington, gives the Securities and Exchange Commission a lukewarm grade of "C" in its lack of detecting the market-timing abuses that plagued the mutual fund industry and how it has flexed its regulatory muscle since the slew of secret deals were uncovered.

Among its report card recommendations, as to how the SEC could do a better job of regulating the fund industry, a report the GAO released April 22, the government watchdog group suggested that the SEC add routine assessments of the effectiveness of chief compliance officers to its inspection repertoire. The GAO also proposed the Commission conduct regular reviews of funds' compliance reports that would include detection of compliance breaches.

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