Financial intermediaries want more time to comply with Securities and Exchange Commission's Rule 22c-2, slated to take effect Oct. 16.

Rule 22c-2 permits mutual funds to charge a redemption fee of 2% of the amount withdrawn or transferred within five days after shares are purchased. The rule is aimed, at best, at dissuading short-term shareholders from market timing funds designed for long-term shareholders, and, at least, getting short-term shareholders to reimburse a mutual fund's direct and indirect costs. It exempts money funds, any fund that issues shares listed on a national exchange and any fund that permits short-term trading as disclosed in its prospectus.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.