From: Chris Jackson
To Whom it May Concern:
I have two separate comments for your consideration pertaining to the implementation of SEC rule 22c-2.
1.) As a financial intermediary currently being asked to sign new agreements with the mutual fund families, it is clear that while the intent of the SEC rule 22c-2 is to provide for tracking of those who make redemption from a fund within 7 days of a purchase, the mutual fund families are omitting this intent and instead stating in their proposed agreements that they can at any time request shareholder names and tax identification numbers from the intermediary. This practice on the part of the fund families is granting them far too much power to request underlying account owner information, rather than limiting it to those situations where a redemption has been made within 7 days of a purchase. I would request that the SEC require the mutual fund families to use language within their agreements that limits their authority to request shareholder information to only those situations where short-term trading appears to have taken place. (Abuses by mutual fund families will occur if they obtain the authority to request privacy related information at any time, lawsuits will result, and privacy rights will be violated. Unfair competition could also result if mutual fund families obtain and abuse this information as well.)
Please take these two issues under consideration as you continue to look at amendments to the ruling. The abuses that are likely by mutual fund families and the costs of this new rule as is are sure to outweigh the abuses and costs associated with limited enforcement to those investors and intermediaries who engage in short-term trading.
Chris Jackson, AFIM