SEC acts in wake of mutual fund scandal

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by Saskia Scholtes

Shortly after the disclosure of the latest mutual fund scandal, in which a number of brokers were found to have received undisclosed payments for directing investors toward particular funds, the Securities and Exchange Commission has released proposals that would require investment advisors to adopt stricter codes of ethics.

The proposals will also require that mutual funds replace their existing chairmen with independent parties, and that at least 75% of fu