Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Monday, March 30, 2009

SEC Defers Consideration of Rule 12b-1 Reform

Andrew J. Donohue, the SEC's Director, Division of Investment Management, gave the Keynote Address at the Investment Company Institute, 2009 Mutual Funds and Investment Management Conference on March 23, 2009.  Among the topics covered was Rule 12b-1 reform, which the SEC has put on hold:

Just as you are adjusting to the new market realities, we also need to adjust and reconsider our regulatory priorities to ensure that limited resources are employed where they can provide the greatest impact and benefit to fund investors. While I know our Chairman is supportive of investor-oriented rule 12b-1 reform, I believe that it would be wise in the current market environment, for us to defer consideration of rule 12b-1 reform for this year. We should address a few fundamental matters that directly impact investor protection concerns. For example, we urgently need to reconcile the diverse regulatory regimes governing investment advisers and broker-dealers, and alleviate the uncertainty in the industry emanating from this unresolved matter.

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