SEC closer to tackling 12(b)-1 fees
Securities regulators are moving closer to proposing a limit on the 12(b)-1 fees that investors pay to mutual funds, according to an InvestmentNews report.
Securities regulators are moving closer to proposing a limit on the 12(b)-1 fees that investors pay to mutual funds, according to an InvestmentNews report. The SEC has been reviewing the use of such marketing and sales fees for the last year and now says that it wants to cap those fees in some way. SEC Chairman Christopher Cox previously has questioned the use of 12(b)-1 fees to compensate brokers, which he says is a departure from the fees’ original intent.
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