WASHINGTON – The Securities and Exchange Commission plans to launch a new risk assessment office dedicated to monitoring the mutual fund industry, Chairman William Donaldson told Congress yesterday.

The office will, in essence, be designed to provide early warnings to the SEC about problems in the industry, specifically ones like the current scandal rocking some of the nation’s largest and most well-respected fund firms. The SEC has been criticized for ignoring on-the-money tips from whistleblowers and, more recently, for its leniency in settling with a law-breaking fund company.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.