Alma Piscitello, SVP and Head of Strategic Relationships for Northern Lights Distributors, LLC, is featured in Fund Operations. Alma’s article, “SEC Guidance on Distribution Fees to Increase Oversight of 12b-1 Payments,” is a must read for investment professionals. Piscitello’s article highlights the responsibility investment professionals have to their clients.
“The distribution landscape is besieged with fees from revenue share, sub accounting to sales and marketing fees.” Piscitello goes on to discuss, “Understanding the cost of distribution is key and more importantly which fees are absorbed by the funds operating expenses and in the case of the new SEC guidance, where 12b-1 fees can be applied. Whether you have a 12b1-fee plan or not, understanding the fee payout will be helpful in creating efficiencies in contract negotiations and ongoing monitoring.”
