The National Association of Securities Dealers has formed a mutual fund task force to recommend ways to make fund costs and distribution agreements more transparent to investors. Members of the mutual fund and broker/dealer communities will sit on the task force, which is being formed as a result of talks between the NASD and the SEC.

The task force will begin work in June, starting by looking at costs, including directed brokerage agreements and soft dollars. Next, it will move into distribution agreements, including 12b-1 fees and revenue sharing, a process that is expected to be more time-consuming than the first phase.

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