Some banks have taken mutual fund disclosure to a new level by making the point in prospectuses that the funds they manage may invest in companies that borrow from the bank.

An investment made by a bank mutual fund in a company with which the bank has a lending relationship may be construed as a conflict of interest. Banks are trying protect themselves from the appearance of impropriety.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.