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.