Securities and Exchange Commission Chairman Mary L. Schapiro called for the reform of 12b-1 mutual fund fees in a speech Thursday.

"When it comes to these fees, there is a need for more fundamental change than merely disclosure reforms and a name change," Schapiro said at the Consumer Federation of America’s 21st Annual Financial Services Conference. "We must critically rethink how 12b-1 fees are used and whether they continue to be appropriate," she said.

The 12b-1 fees, which are charged by mutual funds for marketing and fund promotion, were adopted in 1980 when mutual funds were experiencing huge net redemptions. Initially, such fees were introduced to get inflows into mutual funds and create economies of scale to reduce shareholder expense.

But analysts said such fees are used to cover administrative expenses or the initial commission costs rather than the fund's advertising and distribution costs.

Schapiro agreed. "After 30 years of growth and change in the mutual fund market, it is past the time to reassess their need and their effectiveness," she said. Schapiro has asked her staff to craft recommendations for the commission to consider next year.