A TOUCH OF CLASS: MUTUAL FUND SHARE CLASS DEVELOPMENTS (PART 1)

Over the past two years, the mutual fund distribution and share class landscape has experienced considerable changes in light of several regulatory developments, notably the new and amended fiduciary "investment advice" regulations issued in April 2016 by the Department of Labor under the...

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Bibliographic Details
Published inPractical Lawyer Vol. 64; no. 3; pp. 46 - 64
Main Authors Puretz, Jeffrey S, Catano, James V, Evans, Erica, Gilmore, Shayna, Schleppegrell, Christine A, O'Neill, Melissa A
Format Trade Publication Article
LanguageEnglish
Published Philadelphia American Law Institute 01.06.2018
Subjects
ERISA
Internal Revenue Code
Mutual funds
Scandals
Series & special reports
Shares
United States > US
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Summary:Over the past two years, the mutual fund distribution and share class landscape has experienced considerable changes in light of several regulatory developments, notably the new and amended fiduciary "investment advice" regulations issued in April 2016 by the Department of Labor under the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code of 1986. Other regulatory pressures are also driving these changes, including the renewed examination and enforcement focus of the Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority on share class selections or recommendations made by financial advisers and broker-dealers and other sales-related matters (e.g., the application of sales charge waivers). In addition, interpretive guidance published by the Staff of the SEC regarding "clean shares" and other share class matters has contributed to the broad registration of new share classes and in some cases the repurposing of existing share classes, as well as other product initiatives and changes in the distribution structure for mutual fund shares.
ISSN:0032-6429
2640-9496