Looking ahead to 2002 there are several issues both with mutual fund regulation and proposed legislation that will likely reach some conclusion this year. Late last year, the Securities and Exchange Commission sent out a letter seeking comment on the development of actively managed exchange-traded funds. Those comments are due in January 2002, and Alan Rosenblat, an attorney with Philadelphia-based law firm Dechert, expects that the SEC will release guidelines about that over the course of this year.

"The SEC has been very open minded on actively managed ETFs and new technology is makes them quite possible," said Marianne Smythe, a partner at Wilmer, Cutler & Pickering. "I have every reason to believe that the SEC is going to be very responsive to the industry's comments next year."

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