From: William G. Hammond
As an advisor for over 30 years 12 b-1 fees help cover the cost of servicing the clients after the initial sales has been made. Clients need to have follow up with their advisors. These fees are just a small way to compensate advisors for the work they perform.Clients follow up with us at tax time saying they can't find their 1099.
Overall the market place is educated enough to know about 12-b-1 fees. It should be no surprise to investors. My clients sign a disclosure statement so I know they are aware of the fees.
William G. Hammond, CFP®