At Issue - Market-timing policy: Keep it simple, please.(Opinion)

Investment News, February, 2004

One of the real bright lights in the recent SEC mutual fund reform proposals is the call for fund firms to define their market-timing policies with specificity. While a few have fairly well-defined exchange policies, almost all are struggling with the issue in light of the attention by Attorneys General Spitzer and Galvin, and by the Securities and Exchange Commission.

When you ask funds to define "market timing,'' the common response is: "We have not strictly defined `market timing,' but we know it when we see it.'' It reminds me of the Supreme Court decision that tried to define pornography. Just as the Supreme Court left the interpretation of pornography up to each community, I think the SEC will leave the definition of market timing not only up...

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