Mutual fund directors do a good job monitoring fund advisers on matters required by law but should expand their oversight in several ways, a recent SEC examination of fund directors' practices suggests.

An SEC examination of fund directors' practices indicates that directors could do more to oversee mutual fund advertising and a handful of other fund practices, said Lori Richards, director of the SEC's office of compliance, inspections and examinations. The examinations, conducted randomly by the SEC last year, found that relatively few boards review fund ads, Richard said. The SEC wants fund boards to take a greater role in overseeing advertisements, she said.

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