Role of Auditors |
Bankruptcy |
Soft Dollars |
Mutual Funds
MUTUAL FUND MARKET TIMING & REDEMPTION FEES
Overview
Proposals to correct market-timing abuses in mutual fund practices.
Position
SIA supports enhanced fund disclosure of market timing and also supports cooperative efforts between funds and broker-dealers to assist funds in identifying market timers. In addition, SIA supports mandatory redemption fees on market timers if such a requirement is not unduly burdensome or difficult to apply, and does not inadvertently ensnare innocent parties (fund re-balancing, hardships, etc.).
Position
SIA supports enhanced fund disclosure of market timing and also supports cooperative efforts between funds and broker-dealers to assist funds in identifying market timers. In addition, SIA supports mandatory redemption fees on market timers if such a requirement is not unduly burdensome or difficult to apply, and does not inadvertently ensnare innocent parties (fund re-balancing, hardships, etc.).
Status
Pending House and Senate legislation deal with market timing in various ways: redemption fee; fair-value pricing; ban on short-term trading by insiders; and, RICO enforcement. The SEC has also addressed the issue with proposed rules on enhanced disclosure and redemption fees.
Updates
SIA and ICI Revise Model Contractual Clauses To Reflect SEC Amendments To Redemption Fee Rule 22c-2 - October 19, 2006
