Atlanta, Ga. (Aug. 12, 2003) -- The Financial Planning Association lauded a rule proposed by the NASD to expand disclosure of sales incentives by stockbrokers in the sale of mutual fund shares, but said it doesn’t go far enough.

The NASD proposed disclosure to brokerage customers that a broker-dealer is paid by fund companies for “shelf space” to list funds for sale, and that stockbrokers may receive higher commissions in the sale of some of those mutual funds. According to an NASD news release, the proposal would only require brokers to disclose that they may receive ‘different rates of compensation’ on the funds that they sell.

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