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SEC Vows to Check Mutual Fund Ads

SEC chairman Arthur Levitt said the agency will review mutual fund marketing claims.

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The Securities and Exchange Commission is going to start paying closer attention to mutual fund marketing to make sure investment companies' claims are accurate.

The watchdog agency will embark on a special review of fund company Web sites, sales literature and advertisements, chairman Arthur Levitt said. It will compare fund family claims to the strategies delineated in shareholder reports and actual portfolios to see if they are consistent, he said, adding that it will pay special attention to firms that have employed particularly aggressive advertising.

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Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.