Otherwise known as a distribution and/or service (12B-1) fee, this fee is typically levied by mutual funds in the U.S. and is used to advertise, market and promote the fund.
This fee is named after the SEC rule that allows firms to charge these fees.
Under FINRA rules, these fees are limited to 0.75% of a funds net assets per year for marketing and distribution fees. The limit for shareholder service fees is set at 0.25%.
An investor can find the value of this fee in a fund's prospectus under the heading 'Annual Fund Operating Expenses'