{"id":4452,"date":"2007-06-11T19:26:24","date_gmt":"2007-06-11T19:26:24","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/06\/fees_on_12_b1_mutual_funds_or"},"modified":"2007-06-11T19:26:24","modified_gmt":"2007-06-11T19:26:24","slug":"fees-on-12-b1-mutual-funds-or","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/fees-on-12-b1-mutual-funds-or\/","title":{"rendered":"Fees on 12 B-1 Mutual Funds (or “B Shares”) Under Renewed SEC Scrutiny"},"content":{"rendered":"

\t\t\t\t“B Share”, or “back-end load”, mutual fund issues are being reconsidered by The Securities and Exchange Commission. The “B share” nick-name is derived from Rule 12 b-1 of the Investment Company Act of 1949, amended a quarter century ago to allow for the creation of such shares.<\/p>\n

To combat a huge growth in “no load” mutual funds in the 1980’s, commission based investment firms lobbied for the creation of a product to compete. In response, the U. S. Congress agreed to amend the Investment Company Act to provide for a new class of mutual funds. On such funds, mutual fund companies can, instead of charging the investor an up-front commission, pay commissions to investment firms and their brokers right away, then charge the investor fees over time to recoup those commissions.<\/p>\n

Since that time regulators have been besieged with complaints regarding B Shares. Deception, omission and out-and-out misrepresentations have often been made to lure investors into believing such funds are “no load”. Most observers acknowledge the potential for such abuse, yet little has been done to address the issue.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

“B Share”, or “back-end load”, mutual fund issues are being reconsidered by The Securities and Exchange Commission. The “B share” nick-name is derived from Rule 12 b-1 of the Investment Company Act of 1949, amended a quarter century ago to allow for the creation of such shares. To combat a huge growth in “no load” […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3799,3760],"tags":[],"class_list":["post-4452","post","type-post","status-publish","format-standard","hentry","category-mutual-funds","category-sec-enforcement"],"yoast_head":"\nFees on 12 B-1 Mutual Funds (or "B Shares") Under Renewed SEC Scrutiny — Investor Lawyers Blog — June 11, 2007<\/title>\n<meta name=\"description\" content=\""B Share", or "back-end load", mutual fund issues are being reconsidered by The Securities and Exchange Commission. 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