NEW ORLEANS - Regulators at the Investment Company Institute's Operations Conference here, in the crescent city, said they will be focusing more on electronic communications and management's attitude towards internal controls as they go forward, in an attempt to be more proactive in examining firms' internal controls.

For months, Securities and Exchange Commission Chairman William H. Donaldson has been preaching to fund companies and others in the financial services community to change the "tone at the top," or management's attitude towards internal controls and compliance. Investor confidence had been depleted through the combination of a three-year bear market and numerous shenanigans at many of the nation's largest companies, but the commission's push to regulate attitudes left some skeptical as to the practicality of such subjective criteria.

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