WASHINGTON D.C. - Because of the volatility of the high-yield municipal bond market, SEC examiners will begin to watch more carefully how fund companies establish prices for illiquid securities, said SEC officials.

"Given the fact that there are problems, it would behoove advisors to know how pricing services are establishing those prices," said Gene Gohlke, an associate director with the SEC's office of compliance, inspections and examinations. "One would hope [advisers] would go back and ask how the service is coming up with those prices."

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