The SEC is proposing to shut down transfer agents for mutual funds which have not solved serious year 2000 computer problems by Oct. 15.

Fund transfer agents must assess their year 2000, or Y2K, computer programming readiness by Aug. 31 under an SEC rule proposed this month. If problems on Aug. 31 appear serious, then the fund transfer agents must make a special filing with the SEC describing their problems and pledging to solve them by Oct. 15. If the serious Y2K problems are not remedied by Oct. 15, the transfer agents will have to stop doing business.

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