Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Regulators Release Breakpoints Report, Call for More Research Not Rated 4.0 Email Routing List Email & Route  Print Print
Tuesday, March 11, 2003

Regulators Release Breakpoints Report, Call for More Research

by: Sean Hanna, Editor in Chief

Fund regulators this afternoon said that shareholders paid the incorrect commission on roughly one-third of fund purchases in transactions they studied between November and January. The full report released by the Securities and Exchange Commission (SEC), NASD and the New York Stock Exchange (NYSE) is available on the SEC and NASD Web sites.

Forty-three broker-dealers took part in the initial study of the issue. Because of the findings the regulators are calling on roughly 2,000 broker-dealers to review samples of their front-end load mutual fund purchase transactions and report the results to NASD. The SEC expects to provide broker-dealers a methodology for the examination shortly.

Shareholders were overcharged by an average of $364 in cases in which the regulators found shareholders to have been charged the incorrect commission for fund purchases.

The report stated that most breakpoint problems did not appear to be intentional failures to apply sales load discounts. It added that the causes of the failure to apply lower commissions were:

  • not linking a customer's ownership of different funds in the same mutual fund family to reach the breakpoint amount (44 percent)

  • not linking a customer's purchase of fund shares with shares owned by related persons, such as a spouse or minor children (21 percent)

    It also found that firms relying on paper applications to process transactions did a better job of recognizing breakpoints that those processing orders electronically. 

    Stay ahead of the news ... Sign up for our email alerts now
    CLICK HERE

  • 4.0
     Do You Recommend This Story?



    GO TO: MFWire
    Return to Top
     News Archives
    2024: Q4Q3Q2Q1
    2023: Q4Q3Q2Q1
    2022: Q4Q3Q2Q1
    2021: Q4Q3Q2Q1
    2020: Q4Q3Q2Q1
    2019: Q4Q3Q2Q1
    2018: Q4Q3Q2Q1
    2017: Q4Q3Q2Q1
    2016: Q4Q3Q2Q1
    2015: Q4Q3Q2Q1
    2014: Q4Q3Q2Q1
    2013: Q4Q3Q2Q1
    2012: Q4Q3Q2Q1
    2011: Q4Q3Q2Q1
    2010: Q4Q3Q2Q1
    2009: Q4Q3Q2Q1
    2008: Q4Q3Q2Q1
    2007: Q4Q3Q2Q1
    2006: Q4Q3Q2Q1
    2005: Q4Q3Q2Q1
    2004: Q4Q3Q2Q1
    2003: Q4Q3Q2Q1
    2002: Q4Q3Q2Q1
     Subscribe via RSS:
    Raw XML
    Add to My Yahoo!
    follow us in feedly




    ©All rights reserved to InvestmentWires, Inc. 1997-2024
    14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
    Privacy Policy :: Terms of Use