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Distribution

OCIE Director Discusses Distribution Sweep

March 22, 2013

Carlo di Fiorio, director of the SEC Office of Compliance Inspection and Examinations, spoke recently about the ongoing sweep regarding fund distribution payments at a recent industry conference.  According to MutualFundWire.com, exam staff will be reviewing fees that go beyond the 12b-1 process, including… read more

SEC to Examine Distribution Fees and Alt Funds

March 11, 2013

The SEC will begin an exam sweep of mutual fund distribution fees, including 12b-1, sub-transfer agent, revenue sharing and conference fees, later this year, according to Andrew Bowden, deputy director of the SEC's Office of Compliance Inspections and Examinations.  According to AdvisorOne, Bowden stated… read more

Eliminating 12b-1 Fees in IRA Accounts Would Have Minimal Impact

February 22, 2013

A recent paper analyzes the potential effects of a proposed Department of Labor (DOL) rule that would eliminate 12b-1 fees on mutual funds held in IRA accounts.  Many in the industry have criticized the rule change, arguing that eliminating these fees could reduce the amount… read more

Study: 401(k) Trustees Favor Their Own Fund Families

February 13, 2013

The National Bureau of Economic Research recently studied whether mutual fund families acting as trustees of 401(k) plans display favoritism toward their own funds. The study found  that poorly-performing funds are less likely to be removed from, and more likely to be added to, a… read more

Study: Higher Sales Loads Increase Inflows But Hurt Future Performance

February 07, 2013

A recent academic study looks at how sales loads and revenue sharing affect fund inflows and performance.  The study found that inflows usually increase with the load paid to a broker, in particular when the brokers are unaffiliated.  However, investment performance also tends to suffer… read more