- Fund Regulation
- Retirement Security
- Trading & Markets
- Fund Governance
- ICI Comment Letters
SEC Approves Amendments to NASD Sales Charge Rule
Washington, DC, November 3, 1999 - The Securities and Exchange Commission has approved amendments to NASD Conduct Rule 2830 concerning mutual fund sales charges. (The Institute filed a comment letter on the proposed amendments in September 1998.) The rule amendments revise Rule 2830 to:
- impose maximum aggregate sales charge limits on funds of funds;
- permit mutual funds to charge installment loads;
- prohibit loads on reinvested dividends;
- impose redemption order requirements for shares subject to contingent deferred sales charges; and
- eliminate duplicative prospectus disclosure.
NASD Regulation, Inc. ("NASDR") plans to issue a Notice to Members in the near future discussing the amendments and setting forth the amended rule text.