Country club memberships. Golf trips to Palm Springs. Weekend jaunts to Las Vegas aboard a private jet. Tickets to the World Series.
Fund companies may have rules against portfolio managers or other executives accepting such lavish perks from business partners, but industry insiders say they happen all the time.
So reports the Boston Globe, in the wake of the recent investigation into a Jefferies broker lavishing gifts on Fidelity Investments traders. Fidelitys rules, in fact, say that no one at the firm may accept a gift or compensation that is intended to "influence a funds investment decisions or trading activity." If a Fidelity executive does accept a gift that they deem to be genuinely business related or reasonable, it may not be valued at more than $100 from any one person or outside entity per calendar year. NASD also has a rule that brokers may not offer gifts with a value of more than $100. The Globe article goes on to outline rules at Scudder Funds, Eaton Vance, Bank of America and Putnam Investments .