The five SEC commissioners unanimously voted to require mutual funds to better disclose how shareholders are eligible for commission breakpoints when buying fund shares. The vote gave preliminary approval to the requirement.

The commissioners also approved a public comment period on a rule that would require mutual funds to give investors more information on fund transaction costs inside funds. Those rules do not cover soft-dollar arrangements, although they may be amended to do so.

Finally, they put additional fees and commission disclosure considerations on the agenda for their January 14 meeting. At that meeting they will also look at a proposal that would require that fund board chairmen and three-fourths of fund directors be independent.

Both the rules approved today are a part of an effort by the SEC to make it easier for shareholders to review fees said Chairman William Donaldson.

"Costs can be significant relative to a fund's overall expenses and understanding them can be crucial to a person who is trying to make an investment decision," Donaldson said at the meeting.  

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