SEC Ditches ‘Swing Pricing’ Requirement for Mutual Funds (3)

The US Securities and Exchange Commission has retreated from a plan that would have forced many mutual funds to overhaul their pricing models.

The original proposal would have imposed so-called swing pricing during periods of high redemptions, making it costlier for investors to cash out when markets are roiled. It drew strong opposition not only from the industry but also from Democratic lawmakers who warned the measure could impose heavy burdens on investors saving for their retirements. More than 60% of 401(k) plan assets are held in mutual funds.

The SEC’s meeting agenda for Wednesday made no mention of a ...