09.11.23
Lawmakers Pressure SEC To Drop Swing-Pricing Rule
by: Alex Padalka
More than three dozen House of Representatives members on both sides of the aisle are calling on the U.S. Securities and Exchange Commission (SEC) to reconsider the proposed swing-pricing rule, which would impose swing pricing on most mutual funds and introduce a new hard-close mandate requiring retail investor trades to be placed before 4 p.m.. “This fundamental change to mutual fund operations would create a two-tiered market that would disadvantage retail and retirement investors,” their letter to the SEC stated. “Forcing investors to accept the next day’s price for trades placed after their intermediary’s cut-off time would limit the investor’s ability to react to shifts in the market on any given day.” The rule is also facing opposition from the industry.
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