Fund Democracy, a shareholder advocacy group in Chevy Chase, Md., wants the Securities and Exchange Commission to tighten its policy on granting funds exemptions that remove shareholders' rights to vote on changes of sub-advisers and sub-adviser fees.

Some funds are seeking the exemption for the sole purpose of allotting a greater portion of the management fee to the fund by lowering sub-adviser fees and pocketing the difference, according to Fund Democracy.

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