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"As we near the end of our investigation into the four fund managers, we are following our routine practice of providing them an opportunity to respond to our concerns and with any reasons why we should not initiate proceedings against them," said OSC Enforcement Director Michael Watson.
The OSC did not name the companies, instead urging them to take it upon themselves to tell the public they are under investigation. The Commission also said it took special care not to single any one company out, hence the simultaneous notices.
All four companies issued statements Tuesday revealing themselves, all indicating that they have taken measures to protect against market timing..
The OSC began its probe into potential trading abuses in November, requesting information on policies and procedures from 105 fund companies with the heaviest and most frequent trading volume. Based on that information as well as a random sampling, the Commission next winnowed that down to 31 firms, whose trading records it investigated in depth, many on site. The OSC initially found seven firms among the nations largest, representing 40% of assets suspect. But it has now finally pared that down to only four companies.
After it began its probe, all improper market timing activity ceased, the Commission said. To date, it has found no evidence of late trading.
The Commission plans to continue its examination into potential trading abuses among a second set of firms representing another 40% of the nations assets. Once the investigation into this next set of firms is completed, the Commission will issue a full report.
"Weve said all along that we were going to get the facts, and then act on those facts," said OSC Chairman David Brown. "From the beginning, we knew what was at stake. Thats why were being so thorough. Todays announcement indicates that we are prepared to take whatever regulatory action is necessary to reaffirm investors trust in the mutual fund industry. Weve never lost sight of that goal."