In an update from the Financial Planning Association, 12b-1 Fees are back in focus for the SEC. In testimony before a subcommittee of the Senate Appropriations Committee, SEC Chairman Mary Schapiro disclosed that she has directed staff to prepare a recommendation on whether to make changes to Rule 12b-1, which allows mutual funds to use fund assets to pay expenses including promotions, distributions, and broker commissions. Noting $13 billion in 12b-1 fees were generated in 2008, Schapiro said that it was time for a “comprehensive re-examination” of the rule and fees. “If issues relating to these fees undermine investor interests, then we at the SEC have an obligation to step in and adjust our regulations,” Schapiro added. In a 2007 survey, FPA members indicated that 12b-1 fees are an appropriate form of compensation that should be preserved, but recognized that improved disclosure requirements could be beneficial. (Source: Financial Planning Association June 2009)


Rich Feight, CFP
Rich Feight, CFP

Hi, I'm Rich Feight I'm a fee-only Certified Financial Planner, successful business owner, and self-made millionaire that knows how to beat the system and become wealthy. I have a lot of clients that have done it too. I'm also pretty good at finding that ever-elusive work/life balance so many of us strive for. Lucky for you I have an abundant mindset and give all my knowledge away on my blog. So if you want to know what it takes to become a millionaire, follow me.

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