NEW YORK - The changing regulatory environment in the mutual fund industry has created ambiguous legal standards that require fund advisers to establish new procedures to protect themselves from enforcement proceedings, said industry lawyers.

"By the end of the year I think you'll see major changes in the regulatory landscape," said Richard D. Marshall, a partner with Kirkpatrick & Lockhart LLP, of Washington D.C. A rule proposal that would change how fund advisers disclose fund information and the SEC's increased vigilance on issues like performance advertising are reshaping the regulatory environment, he said.

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