SEC plans 2b-1 fee review
Securities regulators are planning this year to examine mutual funds’ use of 12b-1 fees.
Securities regulators are planning this year to examine mutual funds’ use of 12b-1 fees. Originally intended to cover fund marketing and distribution costs, such fees often are used now as a substitute for a sales load or for servicing, regulators say. Securities and Exchange Commission Chairman Christopher Cox recently said that everything will be on the table during his agency’s review, including a possible effort to repeal the fees.
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