A quiet sort of plunder
Article Abstract:
A common practice used by stockbrokers is to receive 'soft' commissions from clients. The broker will buy something for the client with commissions that are set aside. This makes money managers reluctant to leave the broker, because the manager will lose what was bought by the broker. The practice is unethical and should be made illegal.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1992
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Soft commissions, hard to drop
Article Abstract:
The practice of softing, whereby investment managers of pension funds placing orders with brokers pay commissions beforehand to receive a percentage of it back as a refund has come under question. Fund managers may trade more than they should without even knowing if they are getting the best possible price.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1992
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Pension-fund robbers
Article Abstract:
Most companies with pension funds invest with money management services. However, most pensioners agree to fixed payments, so they do not receive more money if the investments do well. Statistics showing most investment services do not perform as well as the S&P 500 are presented.
Publication Name: The Economist (UK)
Subject: Business, international
ISSN: 0013-0613
Year: 1992
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