Federal securities regulators churned out two more mutual fund reforms last week as directed-brokerage practices were officially junked and portfolio managers met with new standards for disclosure.

In an open meeting Wednesday, the Securities and Exchange Commission continued its efforts to clean up the fund industry by amending rule 12b-1 under the Investment Act of 1940 to prohibit the use of brokerage commissions to finance distribution. A panel of five commissioners voted unanimously to approve the new rule, one aimed at eliminating a serious conflict of interest between funds and their advisors.

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