SEC May Boost Disclosure, Rules for Mutual Fund Fees

U.S. regulators, saying mutual funds don’t fully inform customers about the billions of dollars they charge every year to pay for marketing, took a step toward imposing new rules on the practice.

Securities and Exchange Commission members voted 5-0 today to seek comment on a proposal that would increase disclosure and cap the cumulative fees investors pay over time. Under the measure, a company couldn’t charge more in so-called 12b-1 fees for a class of fund shares that continue to solicit new investors than they charge for classes that don’t.