Financial industry trade associations and other interest groups are calling on the Securities and Exchange Commission to put forth a new rule governing mutual fund fees and stop what the groups deem to be regulation by enforcement.
In a rule-making petition filed Wednesday, four organizations said the SEC should promulgate a rule that defines how fees paid by funds to financial advisers should be disclosed. In the petition, they said such a measure would end the agency’s “concerted campaign of subregulatory sabotage” to outlaw 12b-1 fees, which are collected by financial firms for fund marketing and other services.