Financial Services Industry Faces 22c-2 October 16, 2007 Deadline
SEC Rule 22c-2 goes into effect on October 16, 2007 and provides that if a fund shareholder redeems their shares within seven days, its board must consider whether to quickly impose a redemption fee of up to two percent of the dollar value of the shares redeemed.
East Brunswick, NJ (PRWEB) March 2, 2007 -- SEC Rule 22c-2 goes into effect on October 16, 2007 and provides that if a fund shareholder redeems their shares within seven days, its board must consider whether to quickly impose a redemption fee of up to two percent of the dollar value of the shares redeemed.
On March 11, 2005, the Securities and Exchange Commission (SEC) adopted Rule 22c-2 under the Investment Company Act of 1940 to help curb abuses associated with short-term trading of mutual fund shares. Rule 22c-2 goes into effect on October 16, 2007 and provides that if a fund shareholder redeems their shares within seven days, its board must consider whether to quickly impose a redemption fee of up to two percent of the dollar value of the shares redeemed. Rule 22c-2 impacts both the mutual funds and the financial intermediaries (broker-dealers.) Mutual fund Rule 22c-2's compliance deadline has previously been extended by the SEC, and the market does not anticipate it to be extended again.
"With over 500 mutual funds and 6,500 financial intermediaries, this ruling has an impact across every spectrum of the financial services industry" says Sanjay Bery, Asset Management Solution Partner at BusinessEdge Solutions Inc. "Surprisingly, many companies impacted have just started the planning for 22c-2 and the deadline is just 7 months away.
To implement a 22c-2 quickly and cost effectively requires planning, understanding of the vendor landscape and coordination with all stakeholders." BusinessEdge combines its extensive experience in compliance and asset management and has service offerings to assist mutual funds and financial intermediaries in timely implementation of 22c-2. The service offerings include vendor selection, solution implementation and workflow redesign. BusinessEdge has experience assisting both mutual fund and financial intermediaries in selection and implementation of 22c-2 solutions.
"22c-2 deadlines are approaching and action must be taken. Plugging in the wrong solution is not the answer -- each mutual fund and financial intermediary company must take an overall view of it's current situation and determine the best solution to solving the 22c-2 issue," says Dick Whitney, Compliance Solution Partner at BusinessEdge Financial Services.
About BusinessEdge Solutions Inc.
BusinessEdge Solutions Inc. is an industry-focused business and technology consulting firm offering strategy, process optimization and solution integration to clients in the financial services, life sciences and communications, media and content (CMC) industries. The company drives competitive advantage for its clients by leveraging its vertical-domain thought leadership and asset-leveraged consulting enabled by pre-engineered business and technology solution frameworks to reduce the time, cost and risk of delivering breakthrough results.
BusinessEdge is distinctive among consulting firms in that its multidisciplinary consultants have an average of 15 years of industry-specific experience and expertise. This strong industry knowledge and technology know how is at the core of the company's unwavering commitment to create vision for its clients -- and is the driver behind its delivery of high-impact business solutions. See www.businessedge.com for a more detailed view of the firm's expertise and a complete listing of all its capabilities and solutions.
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