The National Association of Securities Dealers is taking some heat for a new clause it quietly inserted in some broker/dealers' restriction agreements that limits a member's right to sue the SRO.The wording, added to some new agreements this year...
In recent public appearances, Christos Cotsakos, founder and head of E*TRADE, has predicted that "Traditional brokerages will die a slow, painful death." And "All those branch offices the industry has are going to become fast food outlets, so you...
When John Hantz led a mass defection out of American Express Financial Advisors' Detroit office lastOctober, he made both waves and headlines--and discovered the ways in which a former employer can use the temporary restraining order (TRO) process...
In a wide-ranging early morning address last February to investors at a conference sponsored by the Los Angeles Times, SEC Chairman Arthur Levitt encouraged the crowd to ask their brokers how the rep was paid, and if they'd be better off in a fee...
The recent layoffs by Nesbitt Burns Securities of nearly 12% of its U.S. staff is the first step toward the acquisition of a U.S. brokerage, according to several sources at the firm.In mid-February, the Canadian broker/dealer, which is owned by...
On April 9, Judge Constance Baker Motley will hold a fairness hearing in Federal District Court in New York City to hear comments on a settlement proposed by Smith Barney and plaintiffs' attorneys in the sexual harassment and discrimination case...
NASD head Frank Zarb in late February relinquished his title of president to Richard Ketchum, NASD COO. Although Ketchum, the NASD's No. 2 executive, says his responsibilities remain the same, the additional title is seen as a seal of approval...
Salomon Smith Barney has entered into a 50-50 joint venture with Nikko Securities of Japan to offer fee-based consulting services there.Frank Campanale, head of Salomon Smith Barney's Consulting Group, says Salomon Smith Barney is staffing up and...
When brokers sell a mutual fund with a 12b-1 fee, their clients are paying a fee for ongoing service, which, of course, is provided by the broker. Yet firms pocket part--and sometimes all--of 12b-1 fees.The standard practice is to put 12b-1 fees...
A late-year slide in Asian stock markets led to a 9.4% loss for the $2.3-billion Templeton Developing Markets I fund in 1997. But you wouldn't know it from the tax statements the company sent to shareholders.Despite the loss, Templeton Developing...