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It's a gray area. SM2 is basically an evolution of SP. Under SP regulations, you cannot modify the fender linings. If they get worn down from rubbing, the rule of thumb is that you should make earnest effort to replacing the linings. However, any complaints filed as such would definitely fall under "weenie protests".
In SM2, there's no clarification, but, if you use the philosophy for the class, I would think that a mini-tub would be perfectly legal. The car still retains the stock appearance. The car is still streetable. And assuming the rest of the car's modifications still fit under the current regulations, I see no reason for someone to complain about doing a mini-tub.
That aside, it is more cost efficient to flare your fenders than it is to mini-tub the rear.
-Don
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