T Rowe Price is taking steps to crack down market timing within retirement plans by penalizing retirement plan investors for quickly selling their newly purchased mutual fund shares, Dow Jones Newswires reports.
The new short-term trading restrictions covering various types of pension programs, including 401(k) plans and IRAs, are scheduled to take effect Jan. 1. The reforms extend to plans in which T. Rowe Price, or third-party financial service vendors, provide recordkeeping services.
T. Rowe Price tightened rules aimed at deterring short-term traders in non-qualified accounts in April after regulators sanctioned the company for improper trading activities.
The additional penalties for short-term traders planned for next year were described by a company spokesman as the next logical step in policing qualified accounts. Retirement plans are known to attract market timers seeking tax-free rapid-fire exchanges.
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