A new report by the Coalition of Mutual Fund Investors
, finds that fund firms are virtually powerless to put a stop to market-timing in omnibus accounts. The study, entitled "An evaluation of Mutual Fund Redemption Fees and other Market-Timing Policies," analyzed the prospectuses of the 50 largest mutual fund groups.
The findings in the study suggest that many funds cannot stop market timing simply because in omnibus accounts they do not have access to data that would allow them to identify the individual market-timers.
Omnibus accounts are maintained by intermediaries, many of whom are unwilling or unable to share trading data, according to the study.
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