SEC Urged to Reform 12b-1 Fees, Block Risky ETFs

Consumer advocates are urging Securities and Exchange Commission Chairwoman Mary Jo White to reform a host of regulations that they say are failing to “effectively” serve retail investors’ needs. They called for the securities regulator to act now on a fiduciary rule for brokers, to reform 12b-1 mutual fund fees and to stop the approval of risky ETFs. In their March 10 letter to White, the Consumer Federation of America, Fund Democracy, AFL-CIO, Americans for Financial Reform, Consumer Action and Public Citizen say their concerns “reflect the fact that it has been some time since a comprehensive agenda of retail priorities has been clearly communicated to (or by) the Commission,” and that the Commission “can no longer afford to relegate … retail investor protection priorities to a back burner.” More on ThinkAdvisor here.