Your Money : Tighter Rules on Deck?

Disturbed by a lack of information, the Securities and Exchange Commission is about to require that mutual funds disclose more details about the securities in their portfolios, sources say.

The SEC is expected to reinstitute quarterly reporting rules that were eliminated in 1981 as part of the Reagan Administration’s deregulatory efforts.

As a second step, the SEC is considering asking Congress for legislation authorizing the commission to require fund reports even more frequently, according to the sources.

Congressional concerns about recent mutual fund losses linked to so-called derivative securities have helped spur SEC Chairman Arthur Levitt Jr. to move more quickly than planned to ensure that the information gap is closed promptly.

The reporting requirements are expected to be disclosed this summer.

While the SEC has flagged derivatives as a problem, existing reporting rules prevent it from knowing how widespread it is.

Funds currently are required to report investment positions just twice a year.