Fremont Investment Advisors, which runs the Fremont Funds, has drawn the scrutiny of regulators for market-timing arrangements the shop maintained, according to Associated Press reports.

The regulators are looking at Fremont for market-timing arrangements the firm had with select clients. An SEC filing said the firm ended market-timing arrangements that ceased during the final quarter of 2002. Additionally, the managers who were involved with these arrangements have since left the firm, for unrelated matters.

Fremont is said to be cooperating fully with the investigations and the firm is conducting its own internal investigation. A special committee made up of independent directors is reviewing the firm’s trading practices.

Furthermore, the clients that maintained the arrangements actually suffered a net loss in the funds in which they traded, according to the filing.

The Securities and Exchange Commission has launched a formal investigation, and regulators from both New York and California have requested information from the San Francisco-based shop.

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