When brokers sell a mutual fund with a 12b-1 fee, their clients are paying a fee for ongoing service, which, of course, is provided by the broker. Yet firms pocket part--and sometimes all--of 12b-1 fees.The standard practice is to put 12b-1 fees...
A late-year slide in Asian stock markets led to a 9.4% loss for the $2.3-billion Templeton Developing Markets I fund in 1997. But you wouldn't know it from the tax statements the company sent to shareholders.Despite the loss, Templeton Developing...
On Jan. 15, the NASD announced that its membership approved 22 members for its board of governors at the group's annual meeting in Washington, D.C.But Alan Davidson, owner of Zeus Securities in Jericho, N.Y., and president of the 100-member...
Of 53 comment letters received by the NASDR on its proposed U-5 immunity rule, A.G. Edwards was the only firm to oppose the plan.In its letter, A.G. Edwards recommended against approving the rule, which would provide more legal protection for...
When Dean Witter and Morgan Stanley announced their merger early last year, executives at the companies crowed about the synergies to come from Morgan's underwriting prowess and Dean Witter's distribution capability. The firm also quickly became...
In another case against Edward Jones, a panel of judges for the Missouri Court of Appeals heard oral arguments Jan. 7 on whether to vacate a $750,000 arbitration award won by former Jones broker Channing Schwartz in 1995.Edward Jones alleges...
Regional brokers have closed the gap on their wirehouse competitors when it comes to sales performance and practices, according to results of a recent mystery shopping study by Prophet Market Research in San Francisco.But it wasn't so much...
Coming off a year (1996) in which median gross production ($280,989) and broker earnings ($108,064) were at an all-time high, one might think brokerage firms would leave well enough alone. But this year, five major firms have made compensation...
When brokerage firms ask judges to enjoin departing brokers, emotions run high. Like a bitter divorce, the issue involves custody as well as egos. Firms cite theft of trade secrets, confidentiality breaches, violations of non-compete and non...
In October, RR polled a total of 400 brokers; 50 from each of the top firms as measured by number of retail reps: A.G. Edwards, Dean Witter, Edward Jones, EVEREN Securities, Merrill Lynch, PaineWebber, Prudential Securities and Smith Barney...