The Securities and Exchange Commission will continue to focus on mutual fund oversight, Chairman Mary Schapiro told the New York Financial Writers Association. 

In particular, the SEC is concerned about the wide disparity in the equity allocations of target-date funds, she said. “One issue I have asked our staff to examine closely is whether the use of a particular target date in a fund’s name is materially deceptive or misleading and should be prohibited,” Schapiro said.


The Commission is also going to take up proposals to strengthen oversight of money market mutual funds, including eliminating the $1 NAV and requiring capital reserves.


Because information on municipal securities is lacking due to there being no central exchange, the SEC will “take actions within [its] authority to improve disclosure to municipal securities investors, and I plan to request Congress’ assistance to more fundamentally address municipal security disclosure, given the current restrictions on the Commission’s authority to do so,” she said.

The SEC is also considering restricting short selling in down markets, imposing higher standards for investment advisers and identifying emerging risks to investors, including dark pools and electronic trading systems, Schapiro said.

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