The Securities and Exchange Commission is investigating FMI Mutual Funds for possible improper trading practices, the company indicated in a regulatory filing. FMI disclosed that the Commission has opened an informal probe into a 2002 security trade by the former employer of an FMI principal. The principal and former employer were not identified, but the manager of the FMI-affiliated Cortina Funds, Cortina Asset Management, is the sub-adviser in question.

FMI said it would look for injunctive relief against Cortina if improper trades are uncovered. In other words, Cortina Asset Management would try to stay on as advisor of the Cortina funds.

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