Client Alerts
Enhanced Disclosure Proposed For Mutual Fund Front-End Sales Load Breakpoints
January 28, 2004
By Investment Management Practice Group
On December 17, 2003, the Securities and Exchange Commission proposed new disclosure requirements to improve the information about “breakpoints” available to investors in mutual funds. “Breakpoints” are the investment levels that investors must achieve in order to receive a reduced front-end sales loadshares through a broker-dealer or other financial intermediary and are charged a front-end sales load for doing so, the proposed disclosure is potentially important to many investors.