WASHINGTON -- Some mutual funds are coming up short in their efforts to meet new Securities and Exchange Commission rules which require improved disclosure in fund prospectuses, said Paul F. Roye, the director of the SEC's Division of Investment Management last week.

The new rules, which took effect Dec. 1, require funds to take a variety of steps to reorganize and simplify prospectuses, the key disclosure document which investors receive when buying a mutual fund. Before funds can begin selling their shares to the public, the language in their prospectuses must be reviewed by the SEC.

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