November 8, 1993
TO: BROKER/DEALER ADVISORY COMMITTEE NO. 33-93
RE: STEPPED UP COMMISSIONS
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During the Broker Dealer Advisory Committee meeting of October 25th 1993, the
Committee began discussion of the processing of trades involving stepped up
commissions. At present, Broker/Dealers typically enter these trades outside the NSCC
Fund/Serv environment, but interest has been expressed in processing such trades
through normal Fund/Serv channels.
Jonathan Boehm of Kemper Service Company agreed at the meeting to spearhead
an analysis of Fund/Serv’s capability for handling trades involving stepped up
commissions. In order to do so, he will need input from Fund Companies as to stepped
up commission and finders fee arrangements. He will also need input from Broker/Dealers
as to their existing practices with such trades, as well as any proposals they might have
for integrating such trades into mainstream Fund/Serv processing.
As agreed at the meeting, this information is to be forwarded to Jonathan via the ICI.
Hence, please forward any information you deem useful or appropriate to me. The ICI’s
address is listed above, and the fax number is 202-293-1058, should you wish to use that
medium. Since we would like to have a proposal together for the committee’s next
meeting, please forward pertinent information to me no later than December 1, 1993. If
you have any question, please call me at 202-955-6262. Thank you.
Kevin Farragher
Director of Operations -
Distribution & Service