According to the company, elements of the overall solution include:
- Schwab will serve as the primary intermediary with mutual funds on behalf of clients.
- Schwab will provide automated delivery of participant-level data via Charles Schwab Trust Company and Charles Schwab & Co., Inc. trade platforms to the fund companies upon fund companies’ request.
- Schwab has the ability to deliver trading restrictions at the participant, single-fund level to the TPAs upon fund companies’ request.
- Schwab will update all client contracts to reflect new 22c-2 requirements.
Schwab was actively involved in the Standardized Data Reporting group that helped develop the 22c -2 industry best practices, the company said.
Rule 22c-2, which requires plans to disclose investor identity and trading information to mutual fund companies, and allows fund companies to impose fund redemption fees on participants, is scheduled to go into effect on October 16, 2006.
More information about Charles Schwab services can be found at http://corporateservices.schwab.com/default.html .