The Mutual Fund Dealers Association has announced its fee rate schedule for its inaugural year.
MFDA annual membership fees will be equal to the MFDA fee rate multiplied by the prospective member’s average assets under administration. Membership fees will be pro-rated in the first year of membership based on the date of acceptance into membership. Upon acceptance into membership, the MFDA will calculate and invoice the pro-rated fee by multiplying the fee rate by the assets under administration reported as of March 31 for the current year.
The fee rates for the year July 1, 2001 to June 30, 2002 are as follows:
- $84 per million on the first $500 million of AUA
- $79 per million on the next $500 million
- $72 per million on the next $4 billion
- $67 per million on the next $5 billion, and
- $63 per million on amounts in excess of $10 billion.
MFDA fee rates are established annually by the MFDA board of directors. The association expects to begin admitting members after its next board meeting at the end of this month.
The MFDA will not be fully operational until it is recognized as a self-regulating organization by the securities commissions, and members will begin to be admitted in the months following recognition.