As far as I understand you can offer different level of services based on client’s fee payment. but what different services can you offer at each level then? How about offering premium client sofa instead of chair for normal account? Or IPO allocation more benefit to premium account? who can give me a clear explanation please. :((
How about offering premium client sofa instead of chair for normal account? - Can do it if it is cleary disclosed to all clients. IPO allocation more benefit to premium account? - No allocation to premium allocation. Should be proportioned among all the suitable accounts.
The premium service can’t disadvantage the rest of the clients
artvandalay Wrote: ------------------------------------------------------- > The premium service can’t disadvantage the rest of > the clients this is the key.
while just did another question. it is allowed to set a bar of $4m, and only client above the bar can invest in a specific private equity fund. Is this violation then? This certainly give these high value account advantage
No I don’t believe that is a violation This isn’t really a different level of service. They have the right to enforce minimum account balances for PE investments.
I sort of get it better now … but besides IPO, any other service should NOT be offered as different level? give me some example plz
I think while communicating ‘research recommendations’, one cannot email first to premium clients, then regular clients. I mean it should be almost at the same time. Not with lot of time gap. Similarly selling stocks of troubled companies, can they first sell stocks from premium clients and then regular ones. I do not think this is right.
FRM2cfa, that is a good point. thanks for contribution. I guess another one would be you can’t short premium account stock first then normal account.