Mutual fund marketing and compliance executives seize on SEC regulators' every word, much as portfolio managers scrutinize even an offhand remark from Federal Reserve Chairman Alan Greenspan. So, a SEC compliance director's recent admonition about the allocation of initial public offering shares had mutual funds wondering if the SEC was planning to regulate this area.

The answer is no, at least for now. While the SEC is concerned that funds with a high concentration of IPO shares may have artificially skewed performance records that cannot be consistently maintained and are misleading to investors, the SEC is not planning to regulate IPO allocation, said Douglas Scheidt, chief counsel in the SEC's investment management division.

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