SEC warns brokers about compensation disputes

By Al Barbarino (August 3, 2022, 4:39 p.m. EDT) – The U.S. Securities and Exchange Commission on Wednesday warned broker-dealers and investment advisers that the compensation incentives they offer increase the likelihood that their representatives financiers violate standards of conduct.

The agency urged companies to get rid of cash and non-cash compensation structures linked to competitions, quotas and other parameters, noting that these can lead to conflicts of interest that violate the historic rule. the best interests of regulation for dealers and the agency’s fiduciary standard for advisers.

“The greater the reward for the finance professional for meeting particular thresholds…the greater the question of whether the incentive program is compliant…

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