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Prohibition on the Use of Brokerage Commissions To Finance Distribution

SEC · final-rule · Published 2004-09-09 · Effective 2004-10-14 · 69 FR 54728

Document

Document number
04-20373
Federal Register citation
69 FR 54728
CFR reference
17 CFR 270
Type
Rule
Action
Final rule.
Category
final-rule
Agency
US Securities and Exchange Commission
Publication date
2004-09-09
Effective date
2004-10-14
Docket
Release No. IC-26591

Abstract

The Securities and Exchange Commission is adopting amendments to the rule under the Investment Company Act of 1940 that governs the use of assets of open-end management investment companies ("funds") to distribute their shares. The amended rule prohibits funds from paying for the distribution of their shares with brokerage commissions. The amendments are designed to end a practice that poses significant conflicts of interest and may be harmful to funds and fund shareholders.

Source

Authoritative
Federal Register document
Machine
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