The Investment Company Institute's call last week for less portfolio holdings disclosure is probably the best indication that the Securities and Exchange Commission is getting ready to increase disclosure requirements, according to industry observers.

"I think the chances are pretty good that there is going to be a call for more disclosure or the ICI would not have reacted so adamantly," said Don Phillips, managing director of Morningstar. "I think the very fact that they're so adamant about this shows how scared they are, which suggests that the SEC is giving this some real thought."

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