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.
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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
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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.
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FINRA Fines 5 Broker-Dealers
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