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However, the SEC will not turn its attention to 12b-1 fees until it has finished its work on the Dodd-Frank reform bill, she said. But once it takes up 12b-1 fees, she said, it will bring its “full force” to the issue.
The Commission unanimously voted 5:0 to reform 12b-1 fees last July. It must vote again on the proposal to make it final.
“The fees need to be set in a manner that’s fair,” Walter said. “It’s very difficult for investors to understand what they’re paying and when. [The name 12b-1] immediately sounds to an investor like something I don’t understand.”