12b 1 fees cover the expense of posting a fund to the supermarket and

12b 1 fees cover the expense of posting a fund to the

This preview shows page 13 - 15 out of 15 pages.

12b-1 fees cover the expense of posting a fund to the ‘supermarket’ and compensate financial advisors. 11
Image of page 13
Conclusion ‘Closing’ funds should be required to disclose to investors that they will continue to charge 12b-1 fees to fulfill commission obligations, even after the fund closes to new investors 12b-1 Should probably be broken down further to ensure that they are actually being used for the intended purpose and not just an additional bonus for managers. 11
Image of page 14
R eferences 13 2015 Investment company Fact Book ( ) Mutual Fund Fees and Expenses ( https:// ) SEC Probes Whether 12b-1 Fees Are Used Properly (April 9, 2015 ThinkAdvisor) Background Information About 12b-1 Fees ( https:// ) Regulators, Industry Favor Reform, Not Revocation of rule 12b-1 Mutual Fund Distribution Trends, the SEC Sweep Exam and the Backdrop of Rule 12b-1, Lybecker & Williamson, Investment Lawyer, 2013. Revenue Sharing: What Is It?, , Reish, 2008. Best Practices in Applying Revenue Sharing, Journal of Pension Benefits: Issues in Administration, Kirtland, 2011
Image of page 15

You've reached the end of your free preview.

Want to read all 15 pages?

  • Fall '08
  • Staff
  • Investment Company Act of 1940, ) Fees

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture