SEC Announces Round Table on Rule 12b-1 Fees

The Securities and Exchange Commission announced today that it will host a roundtable discussion next month on issues surrounding Rule 12b-1 under the Investment Company Act of 1940. Rule 12b-1 permits mutual funds to use fund assets to finance the distribution of their shares.  The roundtable will take place on June 19, 2007, and will consist of panels addressing

the historical circumstances that led to the promulgation of Rule 12b-1, and the original intended purpose of the rule;
the evolution of the uses of Rule 12b-1 and the rule's current role in fund distribution practices;
the costs and benefits of the current use of Rule 12b-1; and
the options for reform or rescission of Rule 12b-1.