Los Angeles partner Fred Reish was quoted in a PLANADVISER article titled, “Measured Use of 12b-1 Fees Will Continue.” The article highlights what various leaders in the financial services and legal fields have said regarding the use of 12b-1 fees under the new fiduciary rule. According to the Investment Company Institute, retirement plans have been moving away from funds with 12b-1 fees, though Fred notes that small retirement plans can benefit.

“Subsidizing small retirement plans with $10 million of assets or less through 12b-1 fees can also make sense,” Fred said. "The recordkeeper can collect the 12b-1 fees and sub-transfer agency fees to pay for the recordkeeping and compliance costs. Then, any money left over could be paid into an expense recapture account and used to pay a level fee to the plan's adviser."

Read “Measured Use of 12b-1 Fees Will Continue.”