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SEC to Require Funds To Certify Reports

Top executives and financial officers at mutual fund companies will have to certify the financial reports that they file with the Securities and Exchange Commission, the SEC decided during an open meeting last week.

In doing so, the commission essentially interpreted the anti-corporate fraud legislation President Bush signed into law in July, known as the Sarbanes-Oxley Act, to apply to fund companies.

Executives must certify the accuracy of any required shareholder report or information regarding a company's disclosure procedures, as well as any other certifications mandated by the Sarbanes-Oxley legislation, the SEC said.

The SEC also said that all registered investment companies will be required to regularly evaluate disclosure procedures to ensure that financial reports are issued in a timely fashion.