SEC to take com­ment on plan to curb fees on mu­tual funds

Austin American-Statesman - - BUSINESS & PERSONAL FINANCE -

Ac­cus­ing mu­tual funds of fail­ing to fully in­form cus­tomers about the bil­lions of dol­lars they charge ev­ery year to pay for mar­ket­ing, fed­eral reg­u­la­tors took a step to­ward im­pos­ing new rules on the prac­tice.

Se­cu­ri­ties and Ex­change Com­mis­sion mem­bers voted 5-0 to seek com­ment on a pro­posal that would ex­pand dis­clo­sure re­quire­ments and cap the cu­mu­la­tive fees that in­vestors pay over time. Un­der the mea­sure, a com­pany couldn’t charge more in so-called 12b-1 fees for a class of fund shares that con­tinue to so­licit new in­vestors than they charge for classes that don’t.

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