Conflicts in a Rapidly Changing Fiduciary Landscape: Broker-Dealer Challenges

BNY Mellon's Pershing

03/01/2016

Conflicts in a Rapidly Changing Fiduciary Landscape: Broker-Dealer Challenges

Financial headlines seem to cover broker-dealer conflicts of interest every day.

Questions about whether, and the degree to which, existing compensation models satisfy appropriate standards of care are at the center of the debate. Both regulators and clients are asking probing questions.

Amid this landscape, Pershing has worked with Thomas Roberts, a member of Groom Law Group’s Fiduciary practice group, to provide you with a solid understanding of the current landscape. Our two-part series focuses on the emerging compliance challenges confronting broker-dealers and hybrid model firms.

Part One—A Focus on Broker-Dealer Challenges looks at common broker-dealer practices that may cause potential conflicts of interest and the implications firms may want to consider.

Topics include:

  • Sales of Mutual Fund Shares and the Receipt of 12b-1 Fees
  • Receipt of Revenue Sharing Payments
  • Transaction Fee and No-Transaction Fee Mutual Fund Sales
  • Recommendations Concerning the Investment of ERISA and IRA Assets

BNY Mellon's Pershing

BNY Mellon's Pershing

BNY Mellon’s Pershing and its affiliates provide a comprehensive network of global financial business solutions to advisors, broker-dealers, family offices, hedge fund and ’40 Act fund managers, registered investment advisor firms and wealth managers. Many of the world’s most sophisticated and successful financial services firms rely on Pershing for clearing and custody; investment, wealth and retirement solutions; technology and enterprise data management; trading services; prime brokerage and business consulting.

Pershing helps clients improve profitability and drive growth, create capacity and efficiency, attract and retain talent, and manage risk and regulation. With a network of 23 offices worldwide, Pershing provides business-to-business solutions to clients representing approximately 7 million investor accounts globally. Pershing LLC (member FINRA, NYSE, SIPC) is a BNY Mellon company. 

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