voted unanimously on Wednesday in favor of the new regulation, which will affect mutual funds and hedge funds. Once it takes effect, the new anti-fraud rule "would make it a fraudulent, deceptive, or manipulative act, practice, or course of business for an investment adviser to a pooled investment vehicle to make false or misleading statements to, or otherwise to defraud, investors or prospective investors in that pool." A published report
quotes an ICI
spokesman who called the new provision's application to mutual funds "redundant." Once the new rule is published in the Federal Register
, it will go into effect 30 days later.
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