There are several regulatory, nuanced, and interpretive discussions of mutual fund distribution issues, including revenue sharing, 12b-1 fees, and defensive 12b-1 plans. The world of fund distribution to intermediaries for sales of fund shares is not quantum physics, but it is much more hidden and convoluted than logic and law requires. The reason is that it is in the interest of the fund industry to make the process as opaque as possible to minimize the full clarity of fees that are passed on to shareholders in lower performance. Such is the large agency conflict of shareholder interest in the fund industry. The industry has also been very successful in influencing the legislative and regulatory processes to maintain the hidden conflicts of interest inherent in the ongoing fund distribution process vis-a-vis shareholders.Nuanced literature treatments and interpretations of these issues are presented. The topics discussed include the following: (1) definition of revenue sharing, implications of revenue sharing, and revenue sharing recommendations to the SEC; (2) negative implications of revenue sharing and cease and desist order for revenue sharing; (3) revenue sharing nondisclosure, bundled revenue sharing payments, hidden revenue sharing payments,12b-1 fees and revenue sharing, indirect versus direct distribution, aggressive use of revenue sharing, revisiting interpretation of revenue sharing, implications for shareholders, broker favoritism of revenue sharing, and explicit revenue sharing; (4) nature of rule 12b-1 fees, uses of 12b-1 fees, replacing 12b-1 fees, legal review of revenue sharing, and resolution of revenue sharing; (5) defensive 12b-1 plans, adoption of 12b-1 plans, uses of defensive 12-1 plans, defensive 12b-1 plans not required,and defensive 12b-1 plans required; and (6) revenue sharing and defensive 12b-1 plans, N-SAR forms and defensive 12b-1 plans, revenue sharing payments, defensive 12b-1 plans enlighten revenue sharing, revenue sharing in 12b-1 plans, and measure of revenue sharing
