Clean shares of mutual funds are expected to revolutionize how brokers and advisors are compensated for investment advice, irrespective of how the Labor Department uses the products to revise the fiduciary rule, according to experts at Morningstar.
The Labor Department has strongly signaled its interest in using clean shares to create a new exemption under the fiduciary rule.
Clean shares strip 12b-1 distribution fees, which are paid to advisors and brokers when recommending investments, from the cost of mutual funds.
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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.
