Regulatory Alerts2019-05-27
Unethical Commission Sharing Practice by Brokers, Issuing Houses, Bookrunners and Receiving Agents
The Securities and Exchange Commission has prohibited brokers, issuing houses, bookrunners, and receiving agents from sharing brokerage fees or commissions with unregistered private banking officers, asset managers, PFAs, and institutional investors as investment incentives. Only duly registered capital market operators are now eligible to receive these fees, and they must cease offering commission percentages as investment incentives. Violating operators face strict regulatory sanctions, while the public is encouraged to report suspected cases through the Commission’s whistleblowing mechanism.
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