The Securities and Exchange Commission is reconsidering proposals to curb market timing and eliminate late trading because the measures may unfairly affect pension plan participants and other long-term shareholders, according to the Government Accountability Office.

The GAO, formerly named the General Accounting Office, said in a recent report to the House Ways and Means subcommittee on Oversight, that the new rules the SEC is proposing should be modified. In the report, which was prepared at the request of the committee, the GAO contends that in order to implement these new rules, fund companies and intermediaries will need to invest in new technologies and that cost will get passed down to shareholders. The agency also said the late-trading provisions will disrupt the way pensions process certain transactions.

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