SEC Fee Rules Are Good, but Could Be Better
Plus, PIMCO plans emerging-markets stock fund, and more.
Two actions by the SEC this week demonstrate the commission's desire to help fund shareholders better understand the fees they're paying and better evaluate the advisor managing their investments.
On Wednesday, the commission released a proposed rule that would bring changes to funds' marketing and distribution fees, which are known as 12b-1 fees. The proposal aims to curb fees on fund share classes that can be significantly more costly for long-term shareholders, such as C shares, and could lead to changes in the ways fund supermarkets disclose their distribution costs to shareholders.
Ryan Leggio does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.