Commissions? Not
Mutual Funds (08/00) Vol. 6, No. 10 p.86; McReynolds, Rebecca

At a recent regulatory meeting sponsored by the Securities and Exchange Commission, one discussion concerned a proposal that would exempt brokers at major wirehouses from certain fiduciary responsibilities. The proposed exemption would apply only to "nondiscretionary" accounts, or those where the broker recommends, but the client makes, the final buy or sell decision. Some industry observers speculate that such an exemption is an attempt to reward big brokers for moving away from a commission-based model.


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