The Investment Company Institute held a conference call Thursday spelling out three ways mutual funds can thwart market timing.

The ICI said it vigorously supports a firm 4 p.m. deadline for all mutual fund trades to be reported to fund companies – a move it believes will "slam the late trading window shut."

Another initiative is imposing an industrywide 2% short-term redemption fee on the sale of funds for a minimum of five days after purchase – and these proceeds would go directly to the fund, thus benefiting the long-term shareholders as opposed to fund managers and intermediaries.

Yet a third reform ICI leaders would endorse is amending the code of ethics for senior fund personnel to include oversight of all trading activity in a complex’s funds, proprietary or otherwise.

Officials of the ICI are scheduled to testify in Congress this coming Monday and Tuesday on the scandal and other measures to improve fund governance.

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