# Prohibition on the Use of Brokerage Commissions To Finance Distribution
> **US Securities and Exchange Commission** · Final rule. · Published 2004-09-09 · Effective 2004-10-14 · 69 FR 54728
## Document
- **Document number:** 04-20373
- **Category:** final-rule
- **Agency:** US Securities and Exchange Commission
- **Federal Register citation:** 69 FR 54728
- **CFR reference:** 17 CFR 270
- **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
- [Federal Register document](https://www.federalregister.gov/documents/2004/09/09/04-20373/prohibition-on-the-use-of-brokerage-commissions-to-finance-distribution)
---
*AI Analytics · CC0 1.0*