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!