The U.S. Securities and Exchange Commission today announced it will host a roundtable discussion next month on issues surrounding mutual funds’ use of 12b-1 fees, which are similar to trailer fees.

The 12b-1 rule permits mutual funds to use fund assets to finance the distribution of their shares.

“When the commission adopted Rule 12b-1 more than a quarter century ago, the idea was that 12b-1 fees would be a temporary solution to address specific distribution problems, as they arose. But today’s uses of 12b-1 fees have strayed from the original purposes underlying the rule, and it is time for a thorough re-evaluation,” said SEC chairman Christopher Cox.

“This roundtable will help us review current uses of 12b-1 fees, how those fees impact retail investors, and the interests and concerns of independent directors, who must approve 12b-1 plans. The roundtable also will help us identify and evaluate the possibilities for reforming Rule 12b-1,” Cox said.

The roundtable will take place on June 19, and will consist of panels addressing: the historical circumstances that led to the promulgation of Rule 12b-1, and the original intended purpose of the rule; the evolution of the uses of Rule 12b-1 and the rule’s current role in fund distribution practices; the costs and benefits of the current use of Rule 12b-1; and, the options for reform or rescission of Rule 12b-1.