Fidelity Chief Operating Officer Robert Reynolds told attendees at the Reuters Fund Summit yesterday that 12b-1 fees are "fair" and necessary in order to cover distribution costs, Reuters reports.

"Saying that 12b-1 fees are bad and should be done away with is an oversimplification of the system," Reynolds said. "There’s no free lunch anywhere."

Reynolds also said that fund managers’ pay is not shareholders’ or anyone else’s business. "People who read People may care about what someone makes, but they should care about what they pay for [their] investment vehicle," Reuters quotes Reynolds as saying.

Further, Reynolds went on to say, companies with a policy of disclosing their portfolio managers’ pay, might have a hard time attracting top talent.

But Massachusetts’ top regulator William Galvin begged to differ. "Compensation is important. Investors are entitled to that information," he said.

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