The Securities and Exchange Commission will reportedly begin a review of distribution fees in the mutual fund business. The examination should further highlight the cost savings that ETFs provide versus actively managed mutual funds.
The SEC “will begin next week an exam sweep of mutual funds’ distribution fees—12b-1, Sub Transfer Agent, revenue sharing and conference fees,” AdvisorOne reports.
The article cited Andrew Bowden, deputy director of the SEC’s Office of Compliance Inspections and Examinations, who was speaking at a conference Friday in Arlington, Va.
“Bowden said that with this targeted sweep of funds’ distribution fees, the agency would assess the amount of these payments, the services provided under them and ‘the interaction of the service agreements,’” according to the report.