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Tag Archives: reverse churning

SEC Intensifies Scrutiny of Fee-Based Accounts and Reverse Churning

Posted in Broker-Dealer Regulation, Enforcement, FINRA Enforcement, SEC Enforcement

The SEC is crunching a lot of data these days, and it apparently intends to use some of that data to identify “reverse churning.” Reverse churning is the practice of placing a client who trades infrequently in a fee-based, rather than a commission-based, account; Chair Mary Jo White recently identified this as a problem that… Read More