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.
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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.

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