Investors Could Benefit From 12b-1 Fee Reform

Roper, Barbara
April 2008
Journal of Financial Planning;Apr2008 Broker/Dealer Report, Vol. 21, p22
Academic Journal
The article discusses the Rule 12b-1 fee reform in line with investor advocates and securities industry representatives in the U.S. It states that the rule allows fees to be paid out from the mutual fund assets to cover the costs of marketing. A fundamental problem is presented which the compensation method allows fund companies to determine how much the investor will pay their broker or financial planner for the services that professional provides in selling them the fund. It suggests that the best interests of investors will be served if 12b-1 fee reform is taken up as part of a broader approach to compensation reform that tackles this issue.


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