05.08.25

Wall Street Brokers Risk Losing Billions in Fees on SEC Shift

by: Emily Graffeo

A potential regulatory shift in favor of the exchange-traded fund industry is expected to shake up the business models of Wall Street brokers, which risk losing billions of dollars a year in fees that they currently collect from the mutual funds they offer to customers. According to a report released Thursday by Cerulli Associates, these losses are possible if the Securities and Exchange Commission (SEC) allows mutual fund managers to add an exchange traded share class to the funds they operate. They have not been able to make this change previously because of a patent held by Vanguard Group, but that patent recently expired and the SEC has signaled that it is likely to approve some of the pending bids from competitors.

Read the full article on Bloomberg