BISYS Unveils Revamped 22c-2 Compliance Tool

According to a BISYS press release, in addition to its previously announced automated and flexible redemption fee and trade blocking capabilities which adhere to fund family frequent trading policies and a shareholder information and transaction report consistent with the NSCC Standardized Data Reporting Format (See BISYS Releases Rule 22c-2 Compliance Product ), the total solution now includes a Shareholder Information Services Agreement based on the ICI Model Agreement to aid in getting intermediary agreements in place by April 16, 2007.

The SEC gave its final blessing in late September to the amended rule, which requires that most mutual funds execute shareholder information agreements with intermediaries, such as broker-dealers, that hold shares on behalf of other investors. Those funds will now have access to the identity of the customers involved in such transactions – including omnibus accounts – and will require fund board of directors to consider whether a redemption fee policy suits their fund (See SEC Gives Final Passage to 22c-2 Changes ).

The Charles Schwab Trust Company released its own answer to 22c-2 in July (See Schwab Prepared for Rule 22c-2 ) and The Depository Trust & Clearing Corporation (DTCC) did the same in August (See DTCC Puts Out 22c-2 Product ).