NASD on Fund Fees

Mutual fund investors have a vastarray of choices, which is why many relyon the recommendations of their brokers.What fund investors probably don'tknow is that the company of the mutualfund the broker is selling may have paid afee to the brokerage firm to get on its listof most commonly offered funds. A newrule proposed by the National Associationof Securities Dealers (NASD; www.nasd.com) will force brokers to disclosesuch arrangements. NASD also wants individualbrokers to tell investors if theystand to make a bigger commission byselling 1 particular fund instead of another.Lack of investor information in bothareas is a breeding ground for conflicts ofinterest, according to the NASD.