Mutual Fund Redemption Fees

The Securities and Exchange Commission ("Commission' or "SEC') is adopting amendments to a rule under the Investment Company Act. The rule, among other things, requires most open-end investment companies ("funds') to enter into agreements with intermediaries, such as broker-dealers, that hold shares on behalf of other investors in so called "omnibus accounts.' These agreements must provide funds access to information about transactions in these accounts to enable the funds to enforce restrictions on market timing and similar abusive transactions. The Commission is amending the rule to clarify the operation of the rule and reduce the number of intermediaries with which funds must negotiate shareholder information agreements. The amendments are designed to reduce the costs to funds (and fund shareholders) while still achieving the goals of the rulemaking.