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This is from Curriculum. Can someone please explain the relationship between “research payments” and “commission”? What’s unethical here?
The idea is that any commissions paid to the broker for extra services such as research must directly benefit the client because it is the client’s money you are paying with. In this case the beneficiary of the research is someone in the marketing department so the brokder’s research doesn’t really benefit the client and hence it is a violation of Standard III (A) - Loyalty, Prudence and Care.
Thanks! Ethics is the hardest part of the exam IMO…