12b-1 Fees

12b-1 Reform: The Industry Considers the SECs Options

Its one thing to hear Division of Investment Management director Buddy Donohue describe 12b-1 reform as a “high priority” for 2007. But its quite another to see SEC Chairman Christopher Cox wade into the weeds. “[T]he original premises of Rule 12b-1 seem highly suspect in todays world,” said Cox in his notorious April 13 speech. […]

What Led Cox to Tackle 12b-1 Reform?

In an exclusive interview with IM Insight, SEC Chairman Christopher Cox explained what prompted him to take on 12b-1 reform: “From the moment I arrived at the SEC, [12b-1] has been an issue of significant interest at the Commission level,” said Cox. And, he added, “for years in Congress, at the [House] Financial Services Committee, […]

SEC Chairman: More to Come on Soft Dollars, 12b-1 Fees, 401(k) Fee Disclosure, and...

SEC Chairman Christopher Cox delivered a doozy of a speech last week before the Mutual Fund Directors Forum annual policy conference in Washington, D.C. In his remarks, Cox indicated that the SEC: is continuing to scrutinize the use of soft dollars and is considering a soft dollar disclosure rulemaking; is seriously rethinking Rule 12b-1; is […]

12b-1 Reform Now High Priority

Early in his tenure as director of the SECs Division of Investment Management, Buddy Donohue indicated that hed like to take a crack at 12b-1 reform. At last weeks Investment Company Institute conference, he announced that its now at the top of his to-do list.Given the issues surrounding 12b-1 fees, said Donohue, “it would seem […]

Funds Neednt Shy Away From 12b-1 Rebating Programs, Says IM Staff

Just because some brokers might choose to attract retail customers by offering to rebate a portion of a funds 12b-1 fees, doesnt mean that the 12b-1 plan isnt a good idea for the fund. That was the thrust of a no-action letter recently issued to E*TRADE Securities. The web-based broker-dealer launched a 12b-1 rebating program […]

DOL Advisory Opinion Not All It’s Cracked Up To Be

Did you see that May 24 New York Times article profiling the recent Department of Labor advisory opinion issued to Country Trust Bank? The article stated that DOL expressed the view that banks, brokers, and advisers must not accept payments from mutual fund companies “in exchange for steering retirement account customers” into their funds. An […]

Eisenberg Told to Step Back and Weigh Costs of Regulation

Was he there to talk, or was he there to listen? A little of both, it seemed. On May 10, Meyer Eisenberg, acting director of the SECs Division of Investment Management, appeared before the House Capital Markets subcommittee to testify on the state of the mutual fund regulatory landscape. But it was subcommittee Chairman Richard […]

NASD Task Force Urges Profile Plus

The SEC should mandate the use of a new web-based “Profile Plus” prospectus as a point of sale disclosure document. So said the NASDs Mutual Fund Task Forces recent report on Mutual Fund Distribution. The liability concerns surrounding the SECs original profile prospectus would be alleviated by mandating the Profile Plus, specifying the required line items, […]

12b-1 Rulemaking on SEC Backburner

“Not this year.” So said SEC associate director Robert Plaze when asked when the SEC might move forward with any rulemaking in the 12b-1 area. “We are summarizing the ideas we received and are talking among ourselves,” said Plaze at the Mutual Fund Directors Forum earlier this month. However, he said that the staff would […]

Roye Details Status of Investment Management Projects

In his keynote address at last weeks ICI Securities Law Developments Conference, Division of Investment Management director Paul Roye outlined the SECs regulatory agenda for advisers and funds. If you thought we were getting a breather, think again: “[I]t is quite possible that 2005 may rival 2004 in terms of the number and significance of […]

Audio Interviews

How to Read an SEC Enforcement Action

Stern Tannenbaum law firm partner Aegis Frumento on how to get the most from reading an SEC administrative order or court complaint.

Most Important Supreme Court Decisions for Advisers and Funds

Find out the high court decisions from recent years that are likely to affect how advisers and investment companies work from Debevoise partner Robert Kaplan. 

Top 10 Cybersecurity Steps to Take Now

Sutherland law firm partner Brian Rubin shares the most urgent cybersecurity steps for investment advisers.

Top Marketing Problems … and Solutions

Get solutions for the top marketing challenges that advisers face from ACA Compliance Group managing director Kimberly Daly

Watch Out for 5 Cybersecurity Myths

ACA Aponix Director Pascal Busnel on the most common cybersecurity myths that may cause firms to spend resources where they may not be needed.

The Hidden Costs of Non-Compliance

Proskauer law firm partner and former SEC Division of Investment Management deputy director Robert Plaze on why the costs of non-compliance go way beyond an SEC penalty.

CCO Liability: How to Protect Yourself

Find out from Blue Edge Capital CCO Margaret Fretz what chief compliance officers may be liable for and best practices to make sure you are protected.

Ethics or Compliance: Making the Choice

Find out the difference an ethics, rather than a compliance, perspective makes at an advisory firm from former Ethics and Compliance Officer Association COO Timothy Mazur.