WASHINGTON - In a speech that some thought signaled a get-tough attitude toward the mutual fund industry, Securities and Exchange Commission Chairman Harvey Pitt told executives late last month that the SEC would review distribution fees for mutual funds.

Pitt, speaking on the last day of the Investment Company Institute's general meeting here, said that 12b-1 fees, or fees that fund companies use to pay for such distribution costs as advertising and broker compensation, were largely intended to be temporary.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.