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Schapiro Warning to Broker-Dealers

Financial Advisor discusses a letter sent by SEC Chairman,  Mary L. Schapiro here.  In this letter, Schaprio said:

"Some types of enhanced compensation practices may lead registered representatives to believe that they must sell securities at a sufficiently high level to justify special arrangements that they have been given,”

Having spent more than eight years as a Series 7, Series 63 licensed rep, I have only one comment:  No kidding!  It is standard practice to keep escalating compensation as production goes up.  It was not at all uncommon in my day, for the rep to share in 30% or 40% of commisions for the first few ten's of thousands of production, with escalation at various steps until the top of the production chain got 90% or 95% of commissions charged.  Sell, baby, sell!