Thompson Hine is pleased to invite you to listen to the third episode of Market Matters, our podcast series that explores legal and regulatory issues affecting the investment management industry. This episode features JoAnn M. Strasser, a partner in Thompson Hine’s Investment Management practice group, discussing trends and opportunities in light of recent guidance and a no-action letter issued by the SEC, and offering some practical advice for our fund clients related to distribution strategies.

The podcast covers the following topics:

  • The Division of Investment Management’s guidance update, “Mutual Fund Fee Structures,” that provides a path for charging different sales loads within a single class. The guidance confirms that investors who purchase fund shares through a designated intermediary are a “class” under Item 12(a)(2) of Form N-1A.
  • A no-action letter issued by the SEC indicating that under certain circumstances, Section 22(d) of the 1940 Act does not apply to a broker, when the broker, acting as agent for its customers, charges customers a commission for effecting transactions in a share class without any front-end load, deferred sales charge or other asset-based fee for sales or distribution.
  • Ongoing changes in the industry related to the Department of Labor’s pending regulations on investment advice to retirement assets, often referred to as the fiduciary rule. Although the rule’s implementation is headed for a six-month delay, fund intermediaries are continuing to revise their business models with respect to retirement assets, and the fund industry is responding to intermediary requests for new or revised share classes.

Listen to our latest Market Matters podcast.