What Are Clean Shares - Individual Investor

From WSJ:
Dozens of fund companies have also filed to launch so-called T shares, or “transaction” shares, that have uniform sales charges across all fund categories, according to fund researcher Morningstar Inc. Typically, these shares charge a 2.5% load, or fee, when sold, and a 12b-1 fee of 0.25% to pay for distribution or other expenses. Any front-end load may decline for larger purchases. In comparison, the load on an A share class could be 3.75% or more, according to Morningstar.

From Drinker Biddle:
The SEC released recently a no-action letter in which it permitted share class arrangements (dubbed “clean shares”) under which brokers, rather than mutual funds, would set the commission rates on fund shares for their customers as long as certain conditions are met. The guidance comes as brokers seek to reorganize their business models in the wake of the Department of Labor’s fiduciary rule, which is set to take effect in April of this year. The SEC’s guidance may have a wide ranging effect on how mutual fund shares are purchased and sold in the future.

SEC Approves New Mutual Fund Share Class Sales Arrangements for Brokers - http://www.drinkerbiddle.com/insights/publications/2017/01/sec-approves-new-mutual-fund-share-class-sales

Janus Capital & SEC - https://www.sec.gov/divisions/investment/noaction/2017/capital-group-011117-22d.htm