SEC Rule 22c-2 Market Timing Rule Could Adversely Affect 401(k) Pension Providers

An amendment to a rule proposed by the US Securities and Exchange Commission (SEC) to curtail the type of market timing investments that rocked the US mutual fund industry three years ago is likely to have a potentially costly and

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An amendment to a rule proposed by the US Securities and Exchange Commission (SEC) to curtail the type of market-timing investments that rocked the US mutual fund industry three years ago is likely to have a potentially costly and injurious impact on the 401(k) industry. Known as Rule 22c-2, the amendment would place complex and time-consuming reporting burdens on 401(k) service providers-and could wind up spilling over into plan sponsor pockets. The amendment also would diminish some of the flexibility of 401(k) accounts, create privacy issues for plans and participants, and abridge confidential data that could diminish the competitive advantage of some record keepers, according to the rule’s critics. MORE

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