NU Online News Service, Jan. 17, 6:14 p.m. – The Securities and Exchange Commission says it is asking all National Association of Securities Dealers member firms help end some firms’ practice of charging large fund investors excessive fees.
The SEC says it wants information about policies and procedures NASD members have to ensure that their larger investors receive promised sales load charge discounts, known as breakpoints.
The action follows an SEC alert to brokers and NASD’s own notice to its members, both issued in December 2002, urging the firms to review their sales load practices.
In a statement, the Investment Company Institute, Washington, says it supports the SEC’s efforts to protect mutual fund shareholders from overcharges.
“The mutual fund industry looks forward to working with the SEC, NASD and [Securities Industry Association] to ensure investors receive the breakpoints provided by mutual funds,” says ICI President Matthew Fink.