Following the national ban on Deferred Sales Charges (DSC) that took effect on June 1, 2022, what is the regulatory status of mutual funds purchased under a DSC schedule prior to that date?
They must be immediately converted to front-end load versions
The DSC redemption schedules are permitted to run their courseCorrect
All remaining redemption fees are automatically waived by the fund companies
Investors must sell the funds within five years of the ban date
Why
The ban applies to new DSC purchases after June 1, 2022. Existing DSC schedules established before the ban are allowed to continue until they expire.
