The nation's insurance industry would rather that the Securities and Exchange Commission did not adopt amendments to the redemption fee rule that the regulator proposed in February.

Officially known as Rule 22c-2, it's meant to sniff out instances of illegal market timing by imposing fees of as much as 2% of assets on shareholders who redeem their stakes within seven days of purchase. Originally, funds would have been required to enforce the rule, but they argued that it would impossible to track down trades in large omnibus accounts.

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