SEC Grants No-Action Relief Relating to Certain Payments to Retired Representatives

The SEC issued a no-action letter reaffirming its position as to when continuing commissions may be paid to retired associated persons. The letter permitted such commissions to be paid in respect of new accounts opened by the same customer.

View letter in full here (links externally to SEC website).Cross-Reference(s): Exchange Act Section 15(a) [Registration and regulation of brokers and dealers]; Chapter 4 of Broker-Dealer Guide.