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SEC RIN: 3235-AJ17 Publication ID: Spring 2005 
Title: Mutual Fund Redemption Fees  
Abstract: The Commission proposed new Rule 22c-2 under the Investment Company Act to require mutual funds (with certain exceptions) to impose a 2 percent fee on the redemption of fund shares purchased within the previous 5 business days. On March 3, 2005, the Commission voted to adopt new Rule 22c-2, which requires boards of mutual funds that redeem shares within 7 days to (i) adopt a redemption fee of no more than 2 percent or (ii) determine that a redemption fee is not necessary or appropriate for the fund. The rule also requires funds that redeem shares within 7 days to enter into agreements obligating their intermediaries to (i) provide certain shareholder trading information and (ii) enforce the fund’s market timing policies. The Commission also requested comment to obtain further views on whether it should establish uniform standards for redemption fees that funds choose to charge under the rule. 
Agency: Securities and Exchange Commission(SEC)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Completed Actions 
Major: Yes  Unfunded Mandates: No 
CFR Citation: 17 CFR 270.22c-2    17 CFR 270.11a-3   
Legal Authority: 15 USC 80a-11(a)    15 USC 80a-22(c)    15 USC 80a-37(a)   
Legal Deadline:  None
Timetable:
Action Date FR Cite
NPRM  03/11/2004  69 FR 11762   
NPRM Comment Period End  05/10/2004    
Final Action  03/18/2005  70 FR 13328   
Final Action Effective  05/23/2005    
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Small Entities Affected: Businesses  Federalism: No 
Included in the Regulatory Plan: No 
RIN Information URL: www.sec.gov/rules/final/ic-26782.pdf  
Agency Contact:
William C. Middlebrooks Jr.
Office of Regulatory Policy, Division of Investment Management
Securities and Exchange Commission
450 5th Street NW,
Washington, DC 20549
Phone:202 551-6792
Email: middlebrooks@sec.gov