Home Processing Fees Resource Center
Processing Fees Resource Center
Most shareholders of registered investment companies hold fund shares through intermediaries. This means that fund records only identify the intermediary as the record owner, and the fund has limited information about the underlying beneficial shareholders. As a result, funds have no ability to communicate directly with many shareholders, and must rely on intermediaries to deliver fund materials, such as shareholder reports and prospectuses.
The Securities and Exchange Commission’s rules require funds to reimburse intermediaries for “reasonable expenses” incurred in forwarding fund materials to beneficial owners of fund shares. The New York Stock Exchange rules contain a fee schedule that sets forth maximum permissible processing fees. Intermediaries virtually always outsource delivery of fund materials to a fulfillment vendor, which then invoices the fund for the expenses.
This resource center contains the latest news, statements, and policy work around the issue of processing fees.
Statements and News
This section contains the latest statements, speeches, and news releases from ICI on the issues around processing fees.
- Fund Shareholders Have to Receive Reports. They Don’t Have to Pay So Much for ThemNov 1, 2018
- ICI Calls for Saving Fund Shareholders’ Money by Reforming Fees for Distributing Fund Materials
Nov 1, 2018
- Let’s Make Disclosure Reform Serve ShareholdersOct 25, 2017
- ICI General Counsel’s Remarks at SEC Investment Advisory Committee MeetingJul 14, 2016
- ICI Survey: Flawed Fee System Doubles Costs to Fund Shareholders for Broker Delivery of Fund Reports
Jul 14, 2016
- ICI Urges SEC to Take Action to Ensure Fund Shareholders Benefit from Web Delivery of Fund Reports
Mar 14, 2016
Comment Letters
ICI remains committed to representing funds and their shareholders. In fulfilling that mission, ICI actively engages with regulators and comments on policy proposals on the issues around processing fees. This section contains the comment letters ICI has submitted on these issues.
- ICI Letter to SEC on SR-NYSE-2020-96 Regarding FINRA Oversight of Processing Fees (pdf)
Jan 8, 2021
- ICI Supplemental Letter on NYSE Processing Fees (pdf)
Jan 17, 2019
- ICI Comment Letter on Processing Fees Charged by Intermediaries for Distributing Materials Other Than Proxy Materials to Fund Investors (pdf)
Oct 31, 2018
- ICI Submits Comment Letter to SEC on NYSE Proposed Amendment to Fees for Shareholder Report Delivery (pdf)
Sep 12, 2016
- ICI Comment Letter to SEC on Investment Company Reporting Modernization (pdf)
Mar 14, 2016
- Additional ICI Comment Letter on NYSE Proposal Regarding Proxy Distribution Fees (pdf)
Jun 20, 2013
- ICI Comment Letter on NYSE Proposal Regarding Proxy Distribution Fees (pdf)
Mar 15, 2013
- ICI Comment Letter on SEC Concept Release on Proxy System (pdf)
Oct 20, 2010
External Resources
This section contains the latest SEC releases on the issues around processing fees.
- Request for Comments on the Processing Fees Charged by Intermediaries for Distributing Materials Other Than Proxy Materials to Fund InvestorsJun 5, 2018
- Order Granting Approval to Proposed Rule Change Adopting Maximum Fees Member Organizations May Charge in Connection with the Distribution of Shareholder Reports Pursuant to Electronic Delivery Rules Nov 18, 2016
- Order Granting Approval to Proposed Rule Change Amending NYSE Rules 451 and 465 and Related ProvisionsOct 18, 2013
- Order Instituting Proceedings to Determine Whether to Disapprove Proposed Rule Change Amending NYSE Rules 451 and 465 and Related Provisions May 23, 2013
- Notice of Filing of Proposed Rule Change Amending NYSE Rules 451 and 465 and Related ProvisionsFeb 15, 2013
- Concept Release on the US Proxy System Jul 14, 2010
- Order Approving Proposed Rule Change and Amendment No.1 to NYSE Rules Regarding the Transmission of Shareholder Communication Material and Proxy Reimbursement Guidelines Mar 25, 2002
- Notice of Filing of Proposed Rule Change and Amendment No. 1 to NYSE Rules Regarding the Transmission of Shareholder Communication Material and Proxy Reimbursement GuidelinesJan 9, 2002
