New rules issued last week by the Securities and Exchange Commission outlining bank exemptions to the Gramm-Leach-Bliley Act may have important implications for the fund industry, particularly for no-load fund fees.

The new rules outline and clarify exemptions to the Gramm-Leach-Bliley Act, which allow banks to distribute security-based products without having to register as broker/dealers. The rule exemptions allow banks to operate much as they did under a blanket exemption included in the Glass-Steagall Act, portions of which Gramm-Leach-Bliley effectively repealed in November 1999.

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