SEC does the right thing on fund rule.(Reverse Spin)

Investment News, October, 2006

Byline: Charles Paikert Other branches of government may be (and are) criticized for being intransigent and stubborn, but you can't really tar the Securities and Exchange Commission with that brush. Last week, the SEC struck a blow for common sense and flexibility by voting to extend by six months its deadline for financial services companies to comply with Rule 22c-2, aimed at curbing market-timing abuses in mutual funds.

The rule originally was set to go into effect in two weeks. The new rule, wisely, requires mutual fund boards to examine short-term redemption fees to see if they are necessary to prevent market-timing abuses. But critics, InvestmentNews editor Jim Pavia among them, argued the need for the deadline to be extended so the mutual...

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