I know I am preaching to the choir but this is from the
Federal Register
73251 Vol. 72, No. 247 Thursday, December 27, 2007
SUMMARY
:
The Agency is amending its
interfund transfer regulations to provide
that the Executive Director may adopt a
policy of setting limits on the number of
interfund transfer requests. In the near
term, this amendment will allow the
Executive Director to immediately
address and, if necessary, restrict the
activity of frequent traders, who have
disrupted management of the Funds and
whose activity has resulted in increased
costs to participants.
DATES
:
This interim rule is effective
January 7, 2008.
It appears that the Executive Director set the limits to what the board wanted adopted. The problem I see is that the limited IFT's was not posted for all to see. His limits should have been posted somewhere. Or did I miss something getting into this site sfter the fact?
The Agency desires to stop this
excessive trading immediately and also,
after continued analysis, to design an
interfund transfer policy that provides
for administrative efficiency, investment
flexibility, retirement security, as well
as reduced trading costs.
To that end, in the near term, the
Agency is adopting a regulation to grant
the Executive Director the authority to
notify the small percentage of
participants who are driving up costs
through their excessive trading and
request that they cease their practices.
Otherwise, these participants will be
required to request interfund transfers
by mail. It is the Agency’s hope that this
swift and direct action will inform such
participants of the unreasonable
expenses associated with their trading
and persuade them to voluntarily curb
their trading, thereby curtailing the
excessive trading costs borne by all
participants who hold the C, F, S, I, and
L Funds.
Why is the Board calling this excessive trading when WE have the right to do an IFT daily, if we want to. They the Board gave US this privelage to trade daily. Some within the TSP world just was using this privelage to improve their retirement fund. How can this be excessive?
73252
PART 1601
—PARTICIPANTS’ CHOICES OF TSP FUNDS
1. The authority citation for part 1601
continues to read as follows:
Authority:
5 U.S.C. 8351, 8438, 8474(b)(5)
and (c)(1).
2. Amend § 1601.32, by revising
paragraph (b) to read as follows:
§
1601.32 Timing and Posting Dates.
* * * * *
(b)
Limit. There is no limit on the
number of contribution allocation or
interfund transfer requests that may be
made by a participant. In order to
mitigate excessive trading expenses, the
Executive Director may write to any
participant who engages in excessive
trading and ask the participant to stop
this practice. If the participant
continues to engage in excessive
trading, the participant may be required
to request interfund transfers by mail.
[FR Doc. E7
–25007 Filed 12–26–07; 8:45 am]
BILLING CODE 6760–01–P
The amendment still allowed unlimited IFT's to all participants except to those that had excessive trading . But how can it be excessive if WE have no limit to our IFT's? Nowhere posted did the Board say what would be considered excessive trading. If there is no limit to trading what is excessive, 2, 3, 5, 10, 15? What process did the Executive Direcor come up with to come to a decision of excessive trading? Was the decision used on a case by case basis or just set out as punsihment to all of the perceived abussers?
Just my thoughts and opinions.
I know I am preaching to the choir.
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