brokerage commissions are a client asset ??
I’m reviwing the ethics, and I found a question in the curriculum that said in the answer that: the brokerage commissions received shouldn’t be used in the operating expenses of the broker, and that they are an asset belonging to the client and he can ask the broker to buy with them goods or services for the client (called dirceted brokerage in this case)!!!
I don’t know what Am I missing, always thought the commissions are a revenue for the broker, eventually he can used them however he wants. Does “the brokerage commissions” have another meaning ??
PS: Usually I end up being wrong, please be patient with me :)
Study together. Pass together.
Join the world's largest online community of CFA, CAIA and FRM candidates.