PALM DESERT, Calif. - Just over a year after the terrorist attacks of Sept. 11, which forced many financial services companies to relocate their staffs and their computer systems, a Securities and Exchange Commission official said that the disaster-recovery plans of many small-fund companies are inadequate.

Speaking at the Investment Company Institute's Tax & Accounting Conference here, Brian Bullard, chief accountant at the SEC's Division of Investment Management, said that an SEC review of fund companies' business-continuity plans this year found that the plans of small firms included "less documentation" and were "less formalized."

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