SEC Expected to Give Extension on 22c-2

Many in the mutual fund industry expect the Securities and Exchange Commission to give an extension on the Oct. 16 deadline for the anti-timing Rule 22c-2 in the coming days, as many intermediaries have not entered into information-sharing agreements with fund companies and not all fund firms have found a way to extract individual shareholder and trade data from omnibus accounts, The Wall Street Journal reports.

An overwhelming majority of third-party recordkeepers, 72%, have not found a way to detect for questionable trading patterns and share the information with fund companies, according to a member survey of the Society of Professional Administrators and Recordkeepers Institute. Thirty-three percent outright said they would not be ready, and 39% said they would not be ready without significant resources.

"It's been one of the biggest compliance issues" for the mutual fund industry, said Christine Gill, a vice president at PFPC.

Many fund companies are looking for an additional six months to a year to be able to comply with 22c-2, and the National Association for Variable Annuities is looking for an 18-month extension.

The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.