Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:ICI Works on Breakpoints Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, January 30, 2003

ICI Works on Breakpoints

by: Sean Hanna, Editor in Chief

Pressure from regulators and Congress is causing the Investment Company Institute to explore whether the NSCC's Fund/SERV platform could be adapted to ease the tracking of commission breakpoints. The ICI also penned a letter to Robert Glauber, chairman and chief executive officer of the NASD, to ensure that the NASD is aware of Fund/SERV's capabilities.

The letter was at least in part a response to concerns that Fund/SERV may somehow be contributing to the problem.

The ICI is also providing members to a task force into the issue being created by the Securities Industry Association (SIA). The NSCC will also have members on the task force. The task force is reportedly mulling over a number of possible ways to fix the problem, including an educational effort aimed at brokers. It could also target back-office personnel for educational efforts and even try to raise individual investors' awareness of the issue.

Still, the solution according to some observers will have to lie with the brokers as they are most familiar with each client's situation. The complexity of tracking ownership of accounts and the identity of shareholders is likely beyond a pure technological fix.

Yet, even relying on the broker may not work in all cases in the end, says one industry consultant. "It is really in nobody's interest to fix the problem," he said, noting that the extra commissions are found money for the fund firm. "You have to rely on the broker really putting the interests of the client first, that may not always happen."

Ultimately, this may be a no win issue for the fund industry.  

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly




©All rights reserved to InvestmentWires, Inc. 1997-2024
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use