Feds move to clean up industry

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Thursday, Feb. 12, 2004 | 9:20 a.m.

WASHINGTON -- Federal regulators, strengthening their response to the mutual fund scandal, proposed Wednesday to ban special incentive payments by fund companies to brokerages and required that companies provide fund investors more information on fees.

The Securities and Exchange Commission, which has been making a series of changes in rules governing the mutual fund industry, is promising relief to investors from fund abuses by early summer.

The five-member SEC voted in a public meeting to propose a ban on fund companies making special payments to brokerage firms for steering clients toward certain funds.