SEC warns brokerages on bonuses (Dealscape

The top U.S. securities cop is raising concerns about the rich bonuses that some brokerages routinely offer to lure salespeople from rivals.

In an open letter to the CEOs of U.S. broker-dealers on Monday, Securities and Exchange Commission Chairwoman Mary Schapiro cited recent news reports that some brokerages were using "enhanced compensation arrangements'' to lure brokers. The arrangements include big up-front bonuses and increased commissions for selling securities that '"may carry with them enhanced risks to customers,'' Schapiro wrote.

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198 in-depth reports of M&A deals in Regulation
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36 in-depth reports of Reorganization plans in the Financial Services sector
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NOT A SUBSCRIBER? SEC warns brokerages on bonuses Posted on September 1, 2009 3:40 PM The top U.S. securities cop is raising concerns about the rich bonuses that some brokerages routinely offer to lure salespeople from rivals. In an open letter to the CEOs of U.S. broker-dealers on Monday, Securities and Exchange Commission Chairwoman Mary Schapiro cited recent news reports that some brokerages were using "enhanced compensation arrangements'' to lure brokers. The arrangements include big up-front bonuses and increased commissions for selling securities that '"may carry with them enhanced risks to customers,'' Schapiro wrote. This is a free content preview. Subscribers enjoy access to all stories in full as well as second-to-none market intelligence. Dig deeper, with Pipeline. 198 in-depth reports of M&A deals in Regulation 93 articles related to Mary Schapiro 36 in-depth reports of Reorganization plans in the Financial Services sector 17 company pages related to Brokerages 10 years of news and analysis archives from the voice of The Deal Economy Most searched keywords Deutsche Bank Birds Eye Cadbury AG Agrium Inc. Skadden Arps Revolution Money Tandberg ASA Aisling Capital Ken Lewis Natco		EXISTING USERS Username Password Forget your password? Missing a product?

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