The SPARK Institute today urged the SEC to continue allowing mutual funds to make payments to retirement plan providers under 12b-1 programs to compensate them for distribution and other ongoing services, said Jeff Close, spokesman for SPARK. In a comment letter to the SEC, the institute also suggested that any provider that receives compensation from a mutual fund under a 12b-1 program fully disclose details of the compensation to the plan sponsor.
The SEC is reviewing 12b-1 fee regulations and this letter was part of the comment period.
“We believe that all retirement plan service providers should be required to disclose to plan sponsors the compensation they receive from third parties, provide a description of the services they provide for such compensation, and clearly identify potential conflicts they may have,” according to the letter.
