News | 01.31.19
Dozens of Advisors Face Claims of Overcharging for Mutual Funds
More than 50 investment advisors are under pressure to settle federal claims they steered customers to mutual funds that charged excessive fees, say insiders. The SEC's civil enforcement campaign to limit the fee-steering practice has unnerved Wall Street firms and smaller financial advisors, the people said. Money managers have been caught off guard by the extent of the investigations, initially announced in February 2018. The cases involve 12b-1 fees. Seventy percent of mutual fund assets are in share classes that charge the fees, which are typically less than 0.25 percent of the amount invested, according to data from ICI.
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