The National Association of Securities Dealers (NASD) has warned brokers to be more diligent about granting breakpoints to mutual fund customers. Such breakpoints, set by mutual fund companies to reduce front-end sales loads from several basis to several percentage points, generally occur at the $50,000, $100,000, $250,000 and other high marks, sometimes even reducing front-end fees to zero on share purchases of $1 million or more.

Without naming specific brokers, NASD charges that many of them intentionally bill more than they should, and says this is "particularly [egregious] for mutual fund transactions involving letters of intent and rights of accumulation."

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