NU Online News Service, May 6, 2004, 2:14 p.m. EDT, Washington – The U.S. Securities and Exchange Commission is “closely reviewing” the controversial proposal to impose a “hard” 4 p.m. Eastern time cut-off for receipt of mutual fund purchase and redemption orders.[@@]
In a letter to Rep. Rob Portman, R-Ohio, who has raised concerns about the proposal, SEC Chairman William Donaldson notes that many people filing comments with the SEC say a hard 4 p.m. rule might cause problems for retirement plan investors.
“Our staff is closely reviewing the issues raised by these comment letters and also is reviewing the technological capabilities of retirement plan administrators and other service providers so we can obtain a more complete understanding of various systems issues and alternatives to a hard 4:00 rule,” Donaldson writes.
The SEC staff is examining the approach of imposing procedures on the acceptance and cancellation of fund trades, combined with an independent annual audit of the procedures, Donaldson writes.
The American Council of Life Insurers, Washington, is pleased the SEC is closely examining the hard 4 p.m. rule, says Jack Dolan, an ACLI representative.