SEC moving closer to proposing 12(b)-1 fee reform
An SEC official last month reiterated his agency’s intent to reform 12(b)-1 fees.
An SEC official last month reiterated his agency’s intent to reform 12(b)-1 fees. Andrew Donohue, director of the SEC’s investment management division, said in a speech that when it comes to such fees, SEC staff is “seeking to develop a regulatory system that recognizes differences between distribution and shareholder services.” SEC officials previously have said that the intent is to streamline the regulatory approach while creating disclosures that communicate effectively 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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