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December 22, 2003 at 07:00 PM
Dec 22, 2003 — Strong Financial Corp. said it intends to impose a 2% redemption fee on short-term investors and to strengthen the use of fair-value pricing to prevent investors from engaging in frequent trading, based on initial compliance recommendations made by the company’s independent consultant, David S. Ruder, a former SEC chairman.
Under Ruder’s proposal, the 2% fee would be applied to any share of a Strong Fund (other than a money market fund or an ultra short-term income fund) purchased and subsequently sold less than 30 days later. Hardship exceptions with respect to certain types of accounts or investors would be granted.
However, any investor whose trading has triggered these initial deterrence measures and triggers them a second time would be barred for a minimum of two years from investing in any Strong Fund (other than a money market or ultra short-term income fund).
