On January 30, 2004, the NASD issued, and submitted to the SEC, the Report of its “Omnibus Account Task Force.” Last Fall, the SEC requested that NASD convene a working group of industry experts to consider issues relating to the SEC’s consideration of possibly imposing a mandatory redemption fee on short-term trades in mutual funds, as part of the SEC’s efforts to combat abusive “market timing” practices. Specifically, the SEC sought input on how this initiative might be affected by the use of mutual fund omnibus accounts, which is quite widespread. The Report summarizes the views expressed by members of the Task Force, which consists of 16 industry professionals who represent a broad range of participants in the omnibus trading process.

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