Mutual Funds
What is the maximum 12b-1 fee a mutual fund can charge and still be classified as "no-load"?
Under SEC rules, a fund may be called "no-load" only if it has no front-end or back-end sales charges and its 12b-1 fee does not exceed 0.25% (25 basis points). A fund with higher 12b-1 fees cannot market itself as no-lo
Complete Analysis & Legal Rationale
Under SEC rules, a fund may be called "no-load" only if it has no front-end or back-end sales charges and its 12b-1 fee does not exceed 0.25% (25 basis points). A fund with higher 12b-1 fees cannot market itself as no-load.
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 concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Regulatory framework for investment companies including mutual funds (verify current text).
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA materials.