News Flash- ICI to Form Late Trading, Short-Term Task Forces
October 20, 2003
The Investment Company Institute's board of directors is forming two separate task forces to concentrate on preventing late trading and short-term trading. The board will ask each task force to work closely with the SEC, the NASD and other regulators to devise ways firms can "forcefully and effectively" prevent such abuses.
"The board recognizes that new regulatory requirements always come first. Everything is on the table to protect mutual fund shareholders," said Paul G. Haaga, Jr., chairman of the ICI.
Among the solutions that the ICI will ask the two task forces to consider are two that SEC Chairman William Donaldson has put forth: having written rules and regulations that explicitly forbid such practices, and raising redemption fees above 2%.
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