Wall Street & Technology: Blog: 22c-2 Compliance Date Nears by Wall Street & Technology

22c-2 Compliance Date Nears

The April 16 compliance date for SEC Rule 22c-2 is fast approaching, and in less than two weeks, mutual funds and their intermediaries will have to have fleshed out their information-sharing agreements. Last year, funds and intermediaries alike reported their struggle to develop these agreements, which should now be nearly complete.

These agreements will allow the funds to demand previously clouded trading and identification information about individual investors of the fund. Much of this information is hidden as trading activity is conducted en masse in omnibus or super-omnibus accounts.

According to a recent study by mutual fund industry association the SPARK Institute, the outlook is mixed. According to the survey of SPARK member firms, 90 percent of retirement plan intermediaries feel secure that their top 50 trading relationships will not be affected by failure to sign a 22c-2 agreement. However, when the survey was conducted last month, 32 percent of respondents had fewer than half of these agreements signed.

So how's it coming? Have intermediaries been successful in developing and/or implementing the agreements and record-keeping technology necessary to comply with 22c-2? Leave your opinions in our Comments section.

Posted by Cory Levine at 07:44 PM

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