In the Margins

12b-1 out of favor

April 22, 2016

By The Wall Street Journal

The 12b-1 fee is drawing scrutiny under the new Department of Labor fiduciary rule and appears to be losing favor. A common criticism of 12b-1 fees is that they can be overlooked or misunderstood by investors. Unlike commissions, they don’t appear on transaction confirmations, says Mercer Bullard, a securities law professor at the University of Mississippi School of Law. And “although they are charged continuously, shareholders never see the dollar amount they are paying or that is paid to their broker,” he says. Read the original story from The Wall Street Journal.



Most Read

10 Things
10 read in summer 2024

It's the Summer Solstice, and that means that for most of us the sun is shining, temperatures are heating up, and longer days allow for pursuits ...

Top of the Agenda - Compensation
Fund board pay increases in 2023, MPI survey says

Independent mutual fund directors saw an increase in compensation in 2023, on average, although actual compensation levels and percentage adjustments in compensation continue to vary widely ...