Skip to Main Content
Our Commitment to Diversity

SEC Staff Addresses Mutual Fund Fee Structures in Response to DOL's Fiduciary Rule

Date: 19 January 2017
Investment Management Alert
By: Clifford J. Alexander, George Zornada, Steven B. Levine

Summary of Recent SEC Staff Actions
As the April 10, 2017, compliance date for the United Stated Department of Labor’s (“DOL”) new fiduciary rule (the “Fiduciary Rule”) approaches, many mutual fund sponsors have received requests from financial intermediaries to implement changes to mutual fund fee structures designed to facilitate the intermediaries’ compliance with the Fiduciary Rule. The staff of the Securities and Exchange Commission (the “SEC”) has taken the following measures to help facilitate responses by mutual funds to these requests: (1) on December 15, 2016, the staff of the SEC’s Division of Investment Management issued an IM Guidance Update regarding the disclosure of intermediary-specific variations in sales loads and registration of new share classes (the “Staff Guidance”); and (2) on January 11, 2017, the SEC staff issued an interpretive letter clarifying the application of Section 22(d) of the Investment Company Act of 1940, as amended (the “1940 Act”), to underwriters, dealers, and brokers of mutual funds (the “Section 22(d) Letter”). This alert discusses the Section 22(d) Letter and the Staff Guidance.

Click here to read the full alert.

This publication/newsletter is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. Any views expressed herein are those of the author(s) and not necessarily those of the law firm's clients.

Find more items tagged as: Financial Services
Return to top of page

Email Disclaimer

We welcome your email, but please understand that if you are not already a client of K&L Gates LLP, we cannot represent you until we confirm that doing so would not create a conflict of interest and is otherwise consistent with the policies of our firm. Accordingly, please do not include any confidential information until we verify that the firm is in a position to represent you and our engagement is confirmed in a letter. Prior to that time, there is no assurance that information you send us will be maintained as confidential. Thank you for your consideration.

Accept Cancel