Due Diligence

SEC Proposes Killing 12b-1s, Letting B/Ds Set Their Own Fund Loads

In remarks on 12b-1 fees Wednesday at the SEC Open Meeting, SEC Commissioner Mary Schapiro said that the regulator is proposing rules that would "impose limits on the cumulative sales charge – or sales load – that an investor pays" and "eliminate the so-called 'hidden sales charges' that 12b-1 fees can represent by, for the first time, disclosing and regulating these fees as sales charges." The proposed rules would also allow broker-dealers to compete for clients by setting their own mutual fund sales loads rather using uniform loads set by funds.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.