Banks could find themselves on the front lines if investors choose to challenge the Securities and Exchange Commission's adoption of simplified mutual fund prospectuses in the courts, according to a Bank Securities Association official.

"Bankers would be naive to think that-given the nature of their marketplace and the types of retail investors that they have - they will not be among the first testing grounds," said Robert M. Kurucza, general counsel for the association.

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.