The NASD is poised to unleash a wave of enforcement actions against mutual fund firms for failure to supervise and implement systems and policies sufficient in preventing market timing and late trading, according to sources familiar with the matter.

This flurry of cases would not necessarily target firms for complicit deals with rogue investors trying to make a quick buck rapidly trading in and out of a fund or with those scoffing at the trading deadline at the closing bell. Rather, the enforcement actions would take aim at firms whose systems were not in compliance with federal securities laws and may have simply allowed for potential abuses.

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