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Compliance August 4, 2004
SPARK Institute Submits Hard Close Alternative to SEC
August 4, 2004 (PLANSPONSOR.com) - The SPARK
Institute, a 401(k) industry group, has submitted its plan to
the US Securities and Exchange Commission (SEC) for allowing
intermediaries to submit mutual fund orders after 4
p.m.
Reported by Fred Schneyer
The group’s proposal, unveiled in April (See Trade Group Pushes Hard Close Alternative ) would restrict the post 4 p.m. orders to those based on “instructions” received from plans and plan participants before 4 p.m., and to the intermediaries that had adopted the stipulated controls, policies and procedures designed to prevent late trading.
The organization is advancing the plan as an alternative to proposals that all fund trading activity be cut off at 4 p.m. The proposals came out of the ongoing state/federal investigation of abusive fund trading practices focusing on late trading and market timing.