SEC proposes to tighten rules on 12b-1 mutual fund fees
Author: Zachary A. Goldfarb, Washington Post
Jul 22, 2010
"Are mutual funds overcharging investors?
Securities and Exchange Commission Chairman Mary Schapiro, in gentler terms, asked as much Wednesday as the agency proposed new rules to govern mutual fund fees.
The mutual fund fees at issue, known as 12b-1 fees, are little-known annual charges that SEC officials worry are making some investors pay more than they realize to invest in mutual funds. As originally set up, 12b-1 fees go to pay for marketing mutual funds to new investors and to compensating brokerages that sell shares in the funds."
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