The Securities and Exchange Commission announced July 21, 2010, that its staff was proposing a new rule and rule amendments that would place limits on the cumulative sales charges investors pay and encourage competition by allowing funds to permit broker-dealers to establish their own sales charges. The proposal would also eliminate Rule 12b-1 and the requirement that a fund’s board of directors explicitly approve and annually reapprove a fund’s distribution arrangements.

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Source: Investment Management Alert
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