Washington (May 13, 2004) -- The Financial Planning Association voiced its opposition this week to a Securities and Exchange Commission proposal that would single out 12b-1 fees for deduction directly from mutual fund shareholders accounts.

The SEC proposed amending a rule to shift 12b-1 fees that are paid to broker/dealers and investment advisers from being an asset-based charge to a direct deduction from shareholders' accounts. Under the SEC's plan, investors would pay the fees through an automatic redemption of fund shares and the amount of the payment would be shown on their quarterly statements.

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