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Rating:Cox Gunning for 12b-1 Fees Not Rated 3.0 Email Routing List Email & Route  Print Print
Friday, April 13, 2007

Cox Gunning for 12b-1 Fees

by: Erin Kello

The time has come to review the 12b-1 fee SEC chairman Christopher Cox said today. Marketwatch reports that Cox said the fee has nearly been transformed from a distribution subsidy to a "sales load in drag" that compensates brokers. Cox used a nifty analogy to describe what the fee has become, saying that it is, "no more consumer-friendly than forcing cable TV subscribers to pay a special fee of $250 a year so that the cable company can advertise HBO and Showtime to woo potential new customers." 

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