SEC Relaxes Redemption Fee Rule

Law360, New York (September 29, 2006, 12:00 AM EDT) -- Complying with U.S. Securities and Exchange Commission regulations just got a little easier for mutual funds. The SEC has amended its redemption fee rule, and extended the deadline for fund compliance.

The rule, passed in 2005, “requires most mutual funds to enter into shareholder agreements with intermediaries, such as broker-dealers, that hold shares on behalf of other investors,” according to SEC documents.

The rule also requires funds to reconsider their redemption fee policies, which dictate the amounts charged when investors withdraw assets from funds.

The newly...
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