The Securities and Exchange Commission (SEC) is seeking public comments on its plan to extend the information collection required under Rule 12b-1. This rule allows investment funds to cover costs related to distributing their shares if certain conditions are met. It mandates funds to have a written plan approved by directors and shareholders, and to maintain records for oversight. The rule aims to protect investors by ensuring funds are transparent about their distribution expenses. Comments on the necessity, burden, and improvement of this information collection are invited by March 31, 2025.
Simple Explanation
The SEC wants to know what people think about how investment funds tell others about their selling costs, and they're asking for ideas on how to make this process better, more accurate, and easier to understand. They're also trying to make sure these funds keep important paperwork for a long time so investors can trust them.