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When Postage/Handling is Really Commissions
Old 09-10-2011, 12:27 PM   #1
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When Postage/Handling is Really Commissions

Seems as though that FINRA has caught these guys with their hands in the postage bin. Pretty sleazy activity how an investment firm can try to squeeze a few more bucks out of the ignorant investor. So much for the idea of fiduciary.

Of course, "guilty" investment firms do not admit to guilt.

Quote:
According to FINRA, the handling fees were meant to provide a source of additional transaction-based revenue for the firms and were far higher than the cost of the handling-related services provided by those firms. Some of the firms were also charged with additional violation
Quote:
"In addition, they will identify all transaction-based remuneration as commissions or mark-ups (mark-downs) rather than as postage, handling or any other miscellaneous fee.
FINRA Fines 5 Broker-Dealers
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Old 09-10-2011, 12:44 PM   #2
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Originally Posted by mickeyd View Post
Seems as though that FINRA has caught these guys with their hands in the postage bin. Pretty sleazy activity how an investment firm can try to squeeze a few more bucks out of the ignorant investor. So much for the idea of fiduciary.
Wow. For FINRA to whack them, they must have been doing something really egregious.

Yup.
Quote:
The firms charged clients handling fees ranging from $65 to $99 per trade, in addition to a commission.
"Handling fees."

I wonder if they explain underperformance as "Packaged by weight, not volume: some settling may occur during shipping."
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Old 09-10-2011, 01:34 PM   #3
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Reminds me of EBay items with are 50 cents with 8.95 shipping and handling. They offer a money-back guarantee that is worthless.
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Old 09-10-2011, 08:58 PM   #4
Thinks s/he gets paid by the post
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I bought some sliding door screen rollers online that I could not find anywhere else. $6 for the parts $7 shipping. Sure beat an extra 2 hour drive to buy in person.

Commission for buying equities, what's that?
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