SIE Exam Question 516: Answer and Explanation

Question: 516

A no-load mutual fund may charge a 12B-1 fee that is:

• A. Less than .25 of 1% of the POP.
• B. Less than .25 of 1% of the NAV.
• C. Up to .25 of 1% of the NAV.
• D. Up to .25 of 1% of the POP.

Correct Answer: C

Explanation:

C: A 12B-1 fee may be up to ¼ of 1% of the NAV.