Costly Timing
Ultimately, fund shareholders will pay a high price for the mutual fund industry's market timing scandals of 2003.
According to a report from TowerGroup, compliance with the SEC's regulatory response to market timing abuses - Rule 22c-2 - will cost the mutual fund industry a total of $617.5 million over the next three years.
In the first year, the report says, the industry will spend $35.1 million on systems implementation and transaction monitoring alone, with the bulk of the remaining costs going toward the establishment of the agreement process - which involves contacting and vetting intermediaries with which the funds have selling agreements.
On The NEt
Tweet This