Mutual Fund Sales Notice Fees: Are a Handful of States Unconstitutionally Exacting $200 Million Each Year?

November 01, 2012
The National Securities Markets Improvement Act of 19961 (NSMIA) preempted state regulations and registration requirements applicable to mutual funds, thereby providing for exclusive federal jurisdiction over the operation of mutual funds and the contents of a mutual fund’s prospectus. At the same time, NSMIA preserved state antifraud authority with respect to local sales of mutual fund shares. NSMIA also preserved state authority to require mutual funds to file sales reports, indicating the value of shares sold or to be sold to persons located within the state, and to require mutual funds to pay filing fees in connection with the sales reports. To keep reading, download the full article.