Securities and Exchange Commission: Mutual Fund Redemption Fees
GAO-05-451R: Mar 28, 2005
- Full Report:
GAO reviewed the Securities and Exchange Commission's (SEC) new rule on mutual fund redemption fees. GAO found that (1) the final rule permits registered open-end investment companies (funds) to impose a redemption fee of up to 2 percent on the redemption of fund shares and requires that the fund, regardless of whether it imposes a redemption fee, enter into a written agreement with each of its intermediaries under which the intermediaries must provide the fund, upon request, information about the identity of shareholders and information about their transactions in fund shares; and (2) SEC complied with the applicable requirements in promulgating the rule.