SEC's Schapiro calls for review of 12(b)-1 fees

02/8/2010 | InvestmentNews (free registration)

Securities and Exchange Commission Chairman Mary Schapiro said the commission will re-evaluate this year 12(b)-1 fees that are collected by brokers. "The problem is that investors may have no idea these fees are being deducted, what services they are paying for or who they are ultimately compensating," Schapiro said. "That's why I believe we need to critically rethink how 12(b)-1 fees are used and whether they continue to be appropriate." The fees are collected as compensation for selling and servicing mutual funds.

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