Despite the industry's best efforts, it doesn't appear that the haze surrounding the Securities and Exchange Commission's controversial redemption fee rule is about to clear.

Officially known as Rule 22c-2 and an amendment to the Investment Company Act of 1940 adopted last March, the mandate is meant to sniff out instances of market timing that might be illegal or costly to long-term fund shareholders. At its core, the provision would allow funds to impose a 2% redemption fee on shareholders that sell their stakes within seven days of purchase.

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