The Financial Accounting Standards Board (FASB), the self-regulatory body governing the accounting industry, has adopted a change in the accounting method closed-end fund advisers must use that will reduce these companies' profits. The rules apply to funds that lack 12b-1 or contingent deferred sales charges (fees paid when a shareholder redeems his shares). These include closed-end and privately-placed funds.

The new methodology, approved by FASB in late September, requires fund advisers that launch new closed-end funds to take an immediate charge to their balance sheets for commission payments they make to brokers during their initial public offerings as. When a closed-end fund is started, a fixed number of shares are sold by brokers to investors during the fund's initial public offering. Brokerage companies receive commissions for selling these shares.

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