FINRA is currently reviewing business systems and procedures to provide customers with exemptions and discounts available for the acquisition of investment funds through ReinstatementRights1 (RoR). Subsection (1) of Section 26 deals with the payment requirements for distributor concessions and other compensation (including distribution charges paid pursuant to Rule 12b-l of the SEC`s Investment Corporation Act 1940). This rule was also amended in 1981 to allow, among other things, non-disparate dealer concessions, which are specifically disclosed in a fund prospectus, as well as cash concessions or allowances where the distributor has the opportunity to obtain the equivalent cash value of a non-payment concession. The rule also defines certain elements that are not considered essential and therefore are not distributor concessions that must be disclosed in the Fund`s prospectus. A third-party distributor is an institution that sells or distributes investment funds to investors for fund management companies. These companies generally have no direct connection to the fund itself. Partnerships between investment fund companies and third-party distributors often have to be concluded with different fees and provisions. NASD created the Mutual Fund`s Task Force to examine soft dollar, investment fund portfolio transaction costs and distribution agreements. The task force was created following discussions between the SEC and nASD staff to provide guidance to the SEC in the analysis of these issues. The rule was amended in 1981 to clarify that it does not prohibit members, under certain restrictions, from requesting or awarding brokerage commissions in connection with the sale of investment companies and does not prohibit members from selling shares of investment firms that have a disclosure policy to consider the sale of their shares as a factor in the selection of brokers to carry out portfolio transactions. , subject to the best execution.