Compliance June 30, 2006

SPARK Issues 'Best Practices' for Trade Monitoring by RK

June 30, 2006 (PLANSPONSOR.com) - The SPARK Institute announced it has developed 'best practices' for frequent trading monitoring by retirement plan recordkeepers.
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Robert Wuelfing, SPARK Institute president, said in the announcement the guidelines  will reduce the number of alternatives required for compliance with Securities and Exchange Commission (SEC) rule 22c-2 which  reduce s  administrative complexity and confusion among service providers, plan sponsors and participants,  and offers  a cost-effective approach for the retirement plan and mutual fund industries.

Larry Goldbrum, general counsel of The SPARK Institute, said   the ‘best practices,’ developed by the Society for Professional Actuaries and Recordkeepers (SPARK), is based on a review of current industry practices and responses to a SPARK Institute member survey.

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The ‘best practices’ a ddress the following aspects of frequent trading monitoring:

  • Transactions Subject to Monitoring
  • Round Trip Identification Period
  • Monitoring Period 
  • Participant Warning Notices
  • Purchase Restriction Period
  • Restoration of Trading Privileges 
  • Reporting to Funds
  • Trading Restrictions
  • Plan Sponsor and Participant Communications

Copies of The SPARK Institute’s best practices for frequent trading monitoring and its sample contract language are available by contacting the Institute at 860-658-5058

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