Restrictions on Member Compensation
The compensation that brokers receive for selling and distributing investment company securities is strictly regulated. These regulations are meant to prevent brokers from selling a specific issuer’s securities because they can make more money, rather than because it is in the best interest of their customer.
No associated person may accept any compensation from an offeror of investment company products unless all of the following conditions apply:
- • The arrangement is agreed to by the member firm.
- • Payment to associated persons is treated as compensation