Delayed allocation in itself is not illegal. SEC rules don't require managers to allocate securities immediately after trading, though waiting longer than a day risks a charge of inadequate record-keeping. Money managers of unshakable ethical fortitude might wait all day and then allocate fairly. Besides, there's no need for it. Kemper says it now has similar rules.
Investors can call any firm to ask if it allows delayed allocation.
Last April, SEC Chairman Arthur Levitt created a task force to review rules covering money managers. Inc. All rights reserved.