15 /PRNewswire/ -- NASD today alerted investors to the fact that they may not have consistently received breakpoint
discounts to which they are entitled on their front-end load mutual fund purchases.
discounts are applied to front-end load funds to reduce sales loads at the investment levels of $50,000, $100,000, $250,000, $500,000 and $1 million.
This information includes breakpoint
schedules and linkage rules, contingent deferred sales charge schedules, minimum and maximum investment requirements and other security-related information.
The report recommends that: * mutual fund companies take steps to make investors aware of the availability of breakpoint
discounts; * broker-dealers adopt policies and practices to gather the appropriate information from investors so that they can take advantage of all available breakpoint
discounts; * transfer agents and broker-dealers modify the systems used to execute mutual fund transactions; and * regulators, such as NASD, NYSE and the SEC, and the mutual fund and securities industries continue to take active measures to educate the investing public about breakpoint
opportunities, such as NASD's Investor Alert, www.
The new resource center, slated to go live in August, will make Vision's existing breakpoint
information easier to access and use.
Today's actions follow examinations that revealed that many investors were not receiving correct breakpoint
discounts on their mutual fund purchases.
In addition to finding breakpoint
violations, the Commission's settled order against H.
NEW YORK, April 22 /PRNewswire/ -- The Depository Trust & Clearing Corporation announced today its plan to help the mutual fund industry address the breakpoint
issue by modifying two of its mutual fund services -- Fund/SERV(R) and Mutual Fund Profile Service.
Advisors are required, under federal regulations, to consider breakpoint
discounts when proposing the purchase of mutual funds containing sales loads.
Interest in Profile has been growing since the Joint NASD/Industry Task Force on Breakpoints
issued its report and singled out the service for its ability to help meet the challenge of identifying and applying breakpoint
It is a transportation service curb to curb for users in big trouble and mobility breakpoint
for other users.
With NASD's new online tools, getting expense and breakpoint
information has never been faster or easier.