In what some in the industry are heralding as a backhanded acknowledgement of 12b-1 fees, the Securities and Exchange Commission is considering putting a cap on the controversial level-loads.

But some industry executives are balking at the notion, contending a cap on the fees would hurt mutual fund investors because other fees will increase as a result. Or, funds will have to scramble to impose conversions. This is part of a new measure that the SEC is considering, Investment News reports. The second part would split the fees into administration and distribution, and sales costs.

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.