New Fund Rules

Physician's Money DigestSeptember15 2003
Volume 10
Issue 17


If you buy into a mutual fund afterOctober 1, the fund must comply withsome stringent new identification rulesbefore it can let you in. Although someof the information that funds are askedto gather seem basic, like your SocialSecurity number and current address,some of it isn't. The rules, which wereput in place to prevent money laundering,also require the fund to ask foryour birth date and check your nameagainst a list of suspected terrorists andorganizations. The fund must also con-firm your identity shortly after youopen the account; if it can't, it mustcash-out the account. The new customeridentification regulations alsorequire mutual funds to look out forsuspicious trading activity in accountswith balances over $5000. Existingaccount holders are exempt fromthese new regulations.

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