The mutual fund industry may have overstated its ability to deter market timers because compliance officers and securities regulators lack the ability to control individual investors’ personal brokerage accounts, Reuters reports.

According to a new study produced by The Coalition of Mutual Fund Investors , a Washington-based consumer advocacy group, redemption fees, which are imposed by the most of country’s 50 largest mutual fund providers, are ineffective at blocking market timing. The majority of these firms routinely waive these sanctions because their enforcement offices lack access to pertinent information about their shareholders.

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