Can I be told what to sell?

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Jul 7, 2009 4:18 am

In an independent setting with multiple brokers, can an OSJ dictate my business model and tell me what to sell?

 
My understanding is the OSJ is there to approve orders, sign off on correspondence, sign all account paperwork, maintain the books and records, etc. - strictly compliance - they are NOT to dictate what products I sell - i.e., force me to sell a certain share class of mutual fund, or use one product vs another.
 
Correct?
Jul 7, 2009 7:48 am

Yes. If he is there to approve orders, he gets to approve what you sell. 

Jul 7, 2009 10:33 am

<?: prefix = o ns = "urn:schemas-microsoft-com:office:office" /> newrookie:


The OSJ can tell you that they will not approve an order. For example if you place an order for $250,000.00 in C shares, with a time horizon of 20 years your OSJ could tell you that he would not approve that order.  He is not so much telling you what to sell as what NOT to sell. Therefore, in a sense he does get to tell you what you can sell.
JackBlack
Jul 7, 2009 12:24 pm

I understand the "what not to sell" part.

 
What I am asking is can the OSJ tell me, for example, that I MUST do C shs with every client or I MUST do ALL fee-based business?
 
 
Jul 7, 2009 1:51 pm

I do not think that that he could tell you either of those things. What is he trying force you to do or not allowing you to do?

Jul 7, 2009 10:26 pm
newrookie:

In an independent setting with multiple brokers, can an OSJ dictate my business model and tell me what to sell?



My understanding is the OSJ is there to approve orders, sign off on correspondence, sign all account paperwork, maintain the books and records, etc. - strictly compliance - they are NOT to dictate what products I sell - i.e., force me to sell a certain share class of mutual fund, or use one product vs another.



Correct?





March right in to his office first thing and tell him what your understanding regarding what he can or can't do with respect to what you sell.



See what happens next.