Tag: 12b-1 fees
The Department of Labor (DOL) is expected to re-propose regulations that will create fiduciary responsibilities for financial services providers. The form that the proposed regulations will take is not yet known. In 2010, the DOL proposed eliminating third-party incentive payments (such as 12b-1 fees) that encourage broker-dealers and others to sell high-fee mutual funds to…
Abstract In 2010, the U.S. Department of Labor proposed changes that would eliminate third-party incentive payments, such as 12b-1 fees, that may encourage broker-dealers to sell high-fee mutual funds to Individual Retirement Account (IRA) customers. The investment industry argues that eliminating these fees could force broker-dealers to charge directly for advice, which could result in…
