The Securities and Exchange Commission (SEC) may seek a vote on Wednesday on soliciting public opinion on the use of derivatives by mutual funds and ETFs, Pensions & Investments reports. It will ask if there should be rules for such entities and investments governed by the Investment Company Act of 1940. The SEC has been examining the need for special reporting rules or more understandable disclosures and whether funds dependent on derivatives have appropriate risk management strategies and oversight in place. The regulatory review of derivatives usage was initiated in March 2010. The concept release being considered by the SEC will be its first this year.

Click here for the story from Pensions & Investments.