A subplot to New York State Attorney General Eliot Spitzer’s recent criminal charges against Bank of America and three fund companies for allowing hedge fund Canary Capital to trade fund shares after hours is the distinct possibility that instead of twice-a-year disclosures, Canary had daily insight into their holdings. As a result, regulators might soon force mutual fund companies to report specifics of their portfolios four times a year, and maybe even more often, a number of financial news services are reporting.

Regular investors are currently entitled to know the specifics of their mutual fund’s holdings twice per year, but even then, the information is often long outdated. Mutual fund companies have argued that a switch to more frequent disclosure would reveal too much about the fund’s strategies, unfairly benefiting quick-moving short-term investors while harming long-term traders.

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