WSJ – The U.S. Securities & Exchange Commission is conducting a sweep of examinations to investigate how the mutual fund industry uses derivative financial products, the head of SEC’s Office of Compliance Inspections and Examinations said Tuesday.
The goal of the investigation is to help regulators “understand the nature of derivatives in the mutual fund sector” and “make sure that mutual funds aren’t taking on unnecessary risks that people don’t understand,” said Carlo di Florio, who took the helm of OCIE in January, told Dow Jones Newswires in an interview.
