SEC reform proposals would apply to 529 plans
Two new rules proposed by the SEC on January 14 would apply to broker sale of 529 plans. The new point of sale rule would require broker-dealers to inform the customer about sales loads, ongoing asset-based distribution expenses, and maximum deferred sales loads by separate written and oral disclosure to the customer. Information concerning revenue sharing and broker commissions received from the fund company must also be disclosed. The new confirmation rule would require that sale confirmation statements include similar information.
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