Insights
Client Alert
Increased Regulatory Focus on Mutual Fund Purchases, Transaction Fees and Breakpoints
March 01, 2003
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.