NASD Chairman Robert Glauber said the worst wave of law enforcement has passed for the mutual fund industry and that investor complaints have declined since the trading scandals in 2003, Reuters reports.

"From what I know, the worst of it from the fund industry's perspective is likely over," he said at the ICI General Membership Meeting in Washington yesterday. "But there is still some unfinished business in doing more to better inform investors."

He also said the NASD plans to continue on its path of being a "vigilant and forceful regulator" and that "the current state of mutual fund disclosure to investors leaves a lot to be desired."

Glauber urged that the SEC go further in its attempt to improve point-of-sale disclosure for funds.

He even suggested that they be delivered through the Internet.

Glauber also said it would be a good idea to require the same disclosure rules for ETFs, SMAs and annuities as for mutual funds. "These are popular products and getting more so," Glauber said. "There is no reason why those who buy them should not have the same level of disclosure protection as those who buy mutual funds."

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