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Monday, November 08, 2010|
ICI Calls 12b-2 'Inappropriate'
Fundsters who have been following the SEC's proposed 12b-1 fee reforms may want to take a look at a letter from the ICI. InvestmentNews' Jessica Toonkel reports that the mutual fund industry trade group gave the SEC a piece of its mind on Friday, attack the SEC's proposal.
"If adopted as proposed, the revisions could fundamentally alter the way intermediaries use funds in various distribution channels, significantly affect the lineup of share class options currently available to investors, necessitate major systems changes, and require the renegotiation of thousands of dealer agreements," ICI general counsel Karrie McMillan reportedly wrote. "All of this would be done at a great cost that would be reflected in higher expenses borne by shareholders."
BlackRock [see profile] vice chairman Barbara Novick also submitted a comment letter worrying about the proposal resulting higher fees or "a lowering of service levels." Comment letters on the proposal can be found here.
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