With fund companies’ April 16 deadline for putting information-sharing agreements on market timing activity in place with intermediaries, it has become apparent that some funds are now charging redemption fees, The Wall Street Journal reports. Others, however, have dropped them.
According to a spokesman for the Investment Company Institute, between 60% and 70% of fund companies had the agreements in place in the weeks prior to the deadline. “By and large, the industry met the deadline with no major issues,” he said.
But the bigger challenge is the Oct. 16 deadline, by which time fund companies must be able to parse through the data to detect and deter market timing.
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