Money Management Executive
Funds Freeze Broker Kickbacks
November 21, 2003, 1:00 a.m. EST 1 Min Read
MFS Investment Management may not be the only fund company to put a moratorium on soft-dollar and shelf-space arrangements with broker/dealers, Money Management Executive reports in this coming Mondays issue.
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Other companies, fearing investigations and possible retribution by regulators, may follow suit, particularly in light of the SECs recent case against Morgan Stanley for its arrangements with 16 fund companies in its "Partners Program."
Certainly, paying for shelf space has become a valuable marketing tool for mutual fund companies, as more than two-thirds of the fund industry sell their funds through brokers and financial planners. Should and can the industry change this longstanding practice?
Read about what leaders in the industry are doing about this very difficult and timely issue Monday, available only in the print edition.
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Money Management Executive
