The Securities and Exchange Commission has decided to take another look at a portion of its new redemption fee rule, a development that would likely relieve a tremendous burden from the shoulders of the nation's fund companies.

Officially known as Rule 22c-2 and an amendment to the Investment Company Act of 1940 adopted last March, the mandate is designed to sniff out instances of market timing that might be illegal or costly to long-term fund shareholders. When the SEC originally proposed the rule in the wake of the scandal, it called for fund companies to impose a 2% redemption fee on shares redeemed within five days of purchase.

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