Examiners with the Securities and Exchange Commission want to know if registered investment advisors are upholding their fiduciary obligations on the mutual funds they recommend to investors.
The Office of Compliance Inspections and Examinations issued a risk alert announcing its Share Class Initiative, which seeks to identify conflicts of interest in registered investment advisor investment recommendations.
Some share classes have "substantial" loads or distribution fees that advisors affiliated with a broker-dealer may have an incentive to recommend when less-expensive class options are available, according to the alert.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
