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Increased Regulatory Focus on Mutual Fund Purchases, Transaction Fees and Breakpoints

March 01, 2003

By Gerald J. Fields and Richard C. Schoenstein

On February 18, 2003 the National Association of Securities Dealers announced it had formed a Joint NASD/Industry Task Force on Breakpoints to “recommend ways in which the mutual fund and brokerage industries can assure that investors are not overcharged when they purchase mutual funds with front-end loads.” Breakpoints are specified dollar levels of investment at which many mutual fund companies lower up-front sales loads.