The Securities and Exchange Commission has settled an enforcement proceeding against eight former directors of five Morgan Keegan open- and closed-end funds that were heavily invested in securities backed by subprime mortgages.

The proceeding, which began in December 2012, alleged that the directors failed to deliver on their responsibilities, which included determining the fair value of portfolio securities for which market quotations are not readily available.

The SEC and other regulators previously charged Morgan Keegan and others, and the firms later agreed to pay $200 million to settle charges related to their conduct.

"Our settlement sends a clear warning of our commitment to enforce the duty of mutual fund directors and trustees to closely oversee the process of valuing securities held by their funds," stated George Canellos, Co-Director of the SEC's Division of Enforcement.

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