Mutual Fund Breakpoints

This page provides FINRA member firms information about Class A mutual fund breakpoints. View breakpoint information for investors.  

 

Joint NASD/Industry Task Force on Breakpoints

 

Status Report: Implementation of Recommendations of Joint NASD/Industry Breakpoint Task Force

 

Report of the Joint NASD/Industry Task Force on Breakpoints   

 

News

 

2/12/04 - News Release
Fifteen Firms to Pay Over $21.5 Million in Penalties to Settle SEC and NASD Breakpoints Charges

 

11/03/03 - News Release
SEC and NASD Announce Actions as a Result of Findings of "Breakpoint" Overcharges on Mutual Fund Transactions

 

7/22/03 - News Release
Joint NASD/Industry Breakpoint Task Force Issues Report

 

3/11/03 - News Release
SEC, NASD, NYSE Release Findings Of Breakpoint Examination Sweep; Broker-Dealers To Review Transactions

 

2/18/03 - News Release
NASD Announces Joint NASD/Industry Breakpoint Task Force

 

1/15/03 - News Release
NASD Alerts Investors to Problems in Mutual Fund Breakpoints

 

FINRA Investor Resources

 

Mutual Fund Breakpoints: Are You Owed a Refund? (11/3/03)

 

Mutual Fund Breakpoints: A Break Worth Taking (1/14/03)

 

Understanding Mutual Fund Classes (1/14/03)

 

FINRA's Fund Analyzer compares the expenses of different fund classes.

 

Notices to Members & Guidance

 

ICI strongly encourages its members to cooperate in breakpoint refund process.


NASD issues a Member Alert about facilitating refunds of missed breakpoint discounts.


Notice to Members 03-47: Refunds to Customers Who Did Not Receive Appropriate Breakpoint Discounts in Connection with the Purchase of Class A Shares of Front-End Load Mutual Funds and the Capital Treatment of Refund Liability (Notice posted on 8/25/03)

 

Notice to Members 02-85: NASD Requires Immediate Member Firm Action Regarding Mutual Fund Purchases and Breakpoint Schedules (Notice posted on 12/23/02)

 

Breakpoint Notification: Breakpoint Extensions for Notifying Customers Who Purchased Class A Share Mutual Funds Only Via Paper Applications Submitted to Mutual Funds

 

Tools & Resources

 

FINRA Fund Analyzer

 

Task Force recommendations regarding common definitions for mutual funds to use in describing breakpoint discount rules

 

Task Force recommendations regarding confirmation content, including breakpoint legends and disclosing sales charges

 

Frequently Asked Questions

 

Interest Refund Calculator helps member firms determine interest due on missed breakpoint discounts

 

Breakpoint Checklist and Worksheet helps members and associated persons gather the information necessary to deliver breakpoint discounts on sales of Class A shares of front-end load mutual funds

 

Breakpoints Training Outline

 

New Customer Notification Letters and Customer Breakpoint Claim Forms

 

Sample Written Disclosure Statement that should be given to customers who purchase mutual funds