Borrowers get too easy a ride: not all of them were unsophisticated types, duped by commission-obsessed brokers.
BrightScope.com provides online records -- at no charge -- on nearly 450, 000 financial professionals, from commission-based brokers to fee-only advisers.
Protections requiring brokers and commission-based advisors to put the interest of their clients before their own were in the original version of the bill, but were removed under pressure from Wall Street, a big win for them.
Under commission-recapture programs, brokers rebate a portion of their commissions to investment managers and clients.
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The fees of commission-based agents and brokers are tied to specific products and transactions.
Most commission-based agents and brokers are no doubt sincere people trying to do honest work for their clients.
Commission-based agents and brokers often take offense at this distinction.
On May 1, 1975, the Securities and Exchange Commission deregulated commissions among stock brokers, unleashing intense competition among financial services firms and giving birth to the now widespread practice of individual investing.
Julie Brill of the Federal Trade Commission has suggested that data brokers offer people a way to figure out what companies know about them and to correct errors in those databanks.
Now, the same brokers that peddled big commission products (or conflicted proprietary products) will be able to call themselves a fiduciary while they earn the same big fat conflicted compensation they have in the past.
Under the Dodd-Frank financial reform act, which Wall Street and brokers abhor, the wise drafters of the law asked the Securities and Exchange Commission (SEC) to study a uniform fiduciary code for brokers.
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One of the most important provisions of Dodd-Frank to retail investors was Section 913, which required the Securities and Exchange Commission to consider a fiduciary duty for brokers.
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Currently FINRA is responsible for securities brokers, the Commodities Futures Trading Commission for commodities traders and the Federal Reserve for the largest banks.
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Insurance brokers, who typically get a commission worth 20% of the first year of premiums, were hoping that their revenue would not be counted.
When the fund suggests directing brokerage to minority or local brokers, or entering into a commission recapture arrangement, managers emphatically state that performance will deteriorate.
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The most immediate objective in Paulson's regulatory blueprint--and one he thinks could become a reality before he leaves office next year--is the creation of a Mortgage Origination Commission that would establish minimum standards for mortgage brokers and would grade each state's mortgage regulatory system.
The Securities and Exchange Commission was able to exert authority over the brokers only when Richard Whitney, the president of the New York Stock Exchange, had shamed the entire profession by being imprisoned in Sing Sing in 1938 for embezzling money from his partners, his friends, his clients, his clubs, his brother and even his wife.
The Municipal Securities Rulemaking Board, a self-regulatory body that reports to the Securities and Exchange Commission, has proposed rules that would require brokers to ask clients about the importance of state tax benefits, explain a client's direct-sold in-state plan for comparison purposes, and determine what is most suitable for the client--instead of just pushing broker-sold out-of-state plans that might carry higher commissions for them.
Another approach to cost reduction can be commission recapture, or entering into rebate agreements with brokers.
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In particular, many take exception to the brokers' habit of charging customers a commission while simultaneously pocketing sweeteners from insurers.
For years Schwab made much of the fact that his brokers all work on salary, not commission, and don't try to sell a client anything.
Consultants, who advise clients on asset allocation and manager selection, as well as educate their advisory clients on brokerage matters such as soft dollaring and commission recapture, are not required to be licensed as brokers or registered as investment advisors.
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It is an issue that has already been raised in reference to Sedona Sedona. in an ongoing civil lawsuit against a number of brokers and hedge funds and in a Securities and Exchange Commission federal court case filed in April in New York against one brokerage and several individuals.
It is an issue that has already been raised in reference to Sedona Sedona (otcbb: SDNA - news - people ). in an ongoing civil lawsuit against a number of brokers and hedge funds and in a Securities and Exchange Commission federal court case filed in April in New York against one brokerage and several individuals.
Lastly, if you and the buyers wind up with a small gap in your final negotiations over price, ask the brokers if they'd bridge it by accepting a lower commission.
The insurance industry and many brokers oppose it because it would likely change their business models from commission-based to client-centered.
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Finally, on the brokerage front, it appears that investigations into mutual fund marketing practices, such as directing commissions to brokers that sell fund shares, may have an impact upon institutional commission rates.
But now there is a whole new army of brokers that will be fiduciaries too, except unlike an objective fee-only adviser these brokers will still be tempted by the bribe of a big fat commission.
Brokers and fund managers must declare them, like any other form of commission, as they do in America.
Perfecto Yasay, the outgoing chairman of the Securities and Exchange Commission, says he has sent summonses to 59 individuals, at least half of them brokers, to show cause why they should not be charged with insider trading and manipulation involving BW. The charges against them will be filed with the Department of Justice before Yasay leaves office on March 25.
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