The Canadian Securities Administrators has issued new rules intended to deal with conflicts of interest among mutual fund managers, the Globe and Mail reports. Ten years in the making, the new regulations require every mutual fund to create a three-person independent review committee to handle potential conflicts. In contrast, mutual funds in the U.S. must set up a complete board of directions to oversee the funds. Glorianne Stomberg, a former commissioner with the Ontario Securities Commission, told the paper that the a full board is needed to deal with all potential problems that may not fall under the committee’s jurisdiction, such as market-timing, late trading and proxy voting.
