DST to Offer Market Timing ID Program

September 15, 2004 (PLANSPONSOR.com) - In anticipation of new regulations regarding market timing following last year's mutual fund trading scandal, DST Retirement Solutions is now offering an enhanced recordkeeping platform that allows retirement plan providers to define and identify short-term trading activity and assess early redemption fees.

DST is hoping to catch the Security and Exchange Commission (SEC) wave that many expect will require fund companies to charge a 2% redemption fee on rapidly traded investments. By alerting retirement plan providers of possible infractions, the program will save providers from unwanted redemption costs due to a lack of identification of short-term trading, the company said

“We felt it was important to help our client partners stay ahead of the regulations,” said Jim Walsh, client service officer for DST Retirement Solutions, in a press release. “We are making it easy for retirement providers to adopt this capability and be nimble in anticipation of coming regulatory and market changes.”