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Frequently asked questions ban on inducements for investment firms - Return commissions

Frequently asked questions - Ban on inducements for investment firms - Return commissions

What are return commissions?

Return commissions are paid by brokers to investment firms when an investment firm instructs the broker to execute orders on behalf of the investor. This is now banned by law.

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Why are kick back fees banned?

The payment of kick back fees by investment funds provides an incentive for investment firms to include certain funds in their offering, and to guide investors towards the fund that pays the highest fee. This can lead to a situation in which investment firms select funds that are not in the best interests of investors

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