Half of the companies that the Securities and Exchange Commission has contacted with regards to improper trading have reportedly admitted wrongdoing. Forty-four of the 88 companies who've received letters from the SEC have allowed some form of market timing - including firms whose own policies clearly disallow the practice. Not as many companies have admitted to late trading, however.

The wide-ranging probes have prompted many industry experts to predict an overhaul to the mutual fund industry, including the banning of market timing and rule changes regarding the composition of fund boards.

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