12(b)-1 ruling eases fund firms’, B-Ds’ worries — for now
A federal judge dismissed a suit claiming brokers are investment advisers because they receive marketing fees. But the decision is likely to be appealed. So what's at stake? A reversal in the decision could cost fund companies billions -- and force brokers to dually register.
Mutual fund companies won a victory yesterday when a judge dismissed a case that could have forced funds to pay back years worth of 12(b)-1 fees — and created yet another pressure on broker-dealers to register as investment advisers.
In Bradley C. Smith v. OppenheimerFunds Distributor Inc., t
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