Reform for 12(b)-1 fees on horizon
An SEC official said last month that the agency’s staff will recommend that 12(b)-1 fees be broken into at least two pieces: one that is a sales load and another that pays for shareholder servicing and distribution-related administration, according to a recent InvestmentNews report.
An SEC official said last month that the agency’s staff will recommend that 12(b)-1 fees be broken into at least two pieces: one that is a sales load and another that pays for shareholder servicing and distribution-related administration, according to a recent InvestmentNews report. SEC officials previously have said the intent is to streamline the regulatory approach while creating disclosures that allow effective communication with investors and protect their interests. At the same time, the SEC wants to ensure that investors receive the benefits and services that 12(b)-1 fees now fund. Staff recommendations are expected soon.
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