As fund companies and their intermediaries continue to grapple with the finer points of the Securities and Exchange Commission's looming redemption fee rule, industry groups have been working on ways to make complying less complicated.

The rule, officially called 22c-2, has been controversial since its March 2005 passage. Slated to take effect on Oct. 16 of this year, it allows fund companies to impose a redemption fee of as much as 2% on shareholders who sell their stakes within one week of purchase. Meant to detect market timers whose trades might be illegal or expensive to long-term shareholders, the rule also poses several logistical challenges for intermediaries and offers little guidance.

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