{"id":4542,"date":"2007-12-28T00:18:22","date_gmt":"2007-12-28T00:18:22","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/12\/sec_investment_management_divi_1"},"modified":"2021-09-20T15:42:23","modified_gmt":"2021-09-20T20:42:23","slug":"sec-investment-management-divi-1","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/sec-investment-management-divi-1\/","title":{"rendered":"SEC Investment Management Division Director Wants Mutual Funds to Call Their \u201cDistribution Fee\u201d a \u201cSales Charge\u201d"},"content":{"rendered":"

\t\t\t\tThe director of the Securities and Exchange Commission’s Investment Management Division is calling for mutual funds to rename their 75 basis point “distribution fee” and call it a “sales charge”-regardless of whether the sales charge is deducted right away or over a period of time. <\/p>\n

At the Investment Company Institute’s 2007 Securities Law Developments Conference in Washington, Donohue issued a call out for “truth in labeling.” He said that financial advisers should notify investors about the sales charge and the information about the charge should also be in the prospectus and the confirmation.<\/p>\n

Last year, the mutual fund industry collected 12b-1 fees totally $11.8 billion. These fees are authorized under the 1940 Investment Company Act Rule 12b-1 in 1980.<\/p>\n

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

The director of the Securities and Exchange Commission’s Investment Management Division is calling for mutual funds to rename their 75 basis point “distribution fee” and call it a “sales charge”-regardless of whether the sales charge is deducted right away or over a period of time. At the Investment Company Institute’s 2007 Securities Law Developments Conference […]<\/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":[3799,3801],"tags":[],"class_list":["post-4542","post","type-post","status-publish","format-standard","hentry","category-mutual-funds","category-sec"],"yoast_head":"\nSEC Investment Management Division Director Wants Mutual Funds to Call Their \u201cDistribution Fee\u201d a \u201cSales Charge\u201d — Investor Lawyers Blog — December 28, 2007<\/title>\n<meta name=\"description\" content=\"The director of the Securities and Exchange Commission's Investment Management Division is calling for mutual funds to rename their 75 basis point — December 28, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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