Rule 22c-2 compliance fee Sample Clauses

The Rule 22c-2 compliance fee clause establishes a fee charged to intermediaries or financial institutions to cover the costs associated with complying with SEC Rule 22c-2. This rule requires mutual funds to implement policies and procedures to detect and prevent market timing and excessive trading, often necessitating additional monitoring and reporting by intermediaries. By imposing this fee, the clause ensures that the administrative and compliance expenses incurred by the fund are fairly allocated to those entities whose activities generate these costs, thereby supporting regulatory compliance and discouraging abusive trading practices.