Mutual fund regulators are raising the thorny issue of fee disclosure
In a notice to members last week, the National Association of Securities
The regulator also announced it would study the area further.
We are "evaluating the rules that are in place today to see if they need
Fee disclosure has become a hot topic among regulators in recent months.
Regulators and trade groups are pushing for changes amid widespread
But some fund companies and brokerage chiefs said increased scrutiny is
Alan Kennebeck, president and chief executive of Amcore Financial Inc.'s
It may be premature to consider cracking down "until they can evaluate
NASD rules require that sales material be fair and balanced and contain
In some sales literature, companies are so intent on bragging how a fund
"Without that disclosure, it looks as though there are no fees," she
The NASD plans to consider several issues, including the precise
Ms. Hooper said she did not know how long the review would take.
Fund companies are concerned that the agency could require additional
"It could get quite lengthy and that information is available in the
The institute is a Washington-based trade group for the mutual fund
Putting too much information into an advertisement could confuse
Nonetheless, Ms. Hooper of the NASD said it was too early to speculate
Meanwhile, the North American Securities Administrators Association Inc.
"We believe that a lot of people are paying more than they know in
John Markese, president of the American Association of Individual
"For most investors it is difficult to sort through the charges" because