The Securities and Exchange Commission and National Association of Securities Dealers have announced a series of actions resulting from their examination of mutual fund breakpoints. The regulators directed securities firms to assess their treatment of breakpoints in the sale of mutual fund A shares.
The average overcharge was $243, but ranged up to $10,000. One out of five transactions that warranted a breakpoint did not receive it, and regulators estimate that investors are due at least $81 million from 2001 and 2002 alone. Securities firms are obliged to repay clients the fees, including interest, by August of this year.