It has not taken the SEC long to make sure the mutual fund industry is following the practices outlined in a letter the agency issued in December.

SEC auditors are conducting examinations of the industry's bank loan funds to make sure the funds are valuing their assets in compliance with the agency's Dec. 8 letter on valuation, according to agency officials and industry lawyers. Examiners are interviewing fund personnel and reviewing fund documents to make sure that the loans held in bank loan, or so-called floating rate funds, are being valued appropriately, industry lawyers said.

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