Must banks and brokerage companies be obligatory to tell

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Is a Kickback an Anti-competitive practice?

Must banks and brokerage companies be obligatory to tell you that third-party mutual funds they recommend pay them for steering customers to them? When acquiring a mutual fund people can invest in load or no-load funds. A load fund charges a commission (sometimes over 5%) while no-load funds don't charge a commission. The banks as well as brokerage companies usually recommend load funds with which they have a business relationship. Few call this receiving a kick-back. Congressional moves to need disclosure of this relationship has been met with strong opposition. Must this issue be addressed under federal antitrust law? If thus, how?

Reference no: EM1373550

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