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Harrizon [31]
3 years ago
6

An agent of a broker-dealer "A" has been terminated and is associating with broker-dealer "B." The terminated agent agrees to tu

rn over his clients to another agent at broker-dealer "A" in return for half of the commissions generated by those clients over the following year. This arrangement is:
Business
1 answer:
Lynna [10]3 years ago
4 0

Answer: Prohibited

Explanation:

This agreement is prohibited because agents working in different firms are not allowed to split commissions. The agent who has been terminated from broker-dealer A is associating with broker-dealer B and seeing as the arrangement is for a year, it will last the entirety of the time that both agents will be in different firms.

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