Securities and Exchange Commission: Mutual Fund Redemption Fees
GAO-07-128R: Oct 16, 2006
- Full Report:
GAO reviewed the Securities and Exchange Commission's (SEC) new rule on mutual fund redemption fees. GAO found that (1) the rule allows funds to recoup some of the direct and indirect costs of frequent trading and reduces the dilution of fund shares, and the rule also requires that the fund, regardless of whether it imposes a redemption fee, enter into a written agreement with each of its intermediaries, such as broker-dealers or retirement plan administrators, under which they must provide the fund, upon request, with information about the identity of shareholders and information about their transactions in fund shares; and (2) SEC complied with applicable requirements in promulgating the rule.