Mutual Funds
What is the maximum total 12b-1 fee that can be charged by a mutual fund?
12b-1 fees are capped at 1.00% of fund assets annually (0.75% for distribution fees + 0.25% for service fees).
Complete Analysis & Legal Rationale
12b-1 fees are capped at 1.00% of fund assets annually (0.75% for distribution fees + 0.25% for service fees).
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing securities rule described in the explanation.
Does not match the governing securities rule described in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing securities rule described in the explanation.
Official Standard: Regulatory framework for investment companies including mutual funds (verify current text).
Official Standard: Outline-level citation: item maps to Series 7 topic coverage. Prefer a specific FINRA/SEC/MSRB rule citation in a later author pass.