Reciprocal Dealings or Shelf Space

Overview

Broker-dealers are prohibited from pushing the sales of particular funds (sometimes called providing "shelf space") in return for the funds directing business back to the broker-dealer. This is another example of an anti-bribery rule. Here, the intent is both to prevent broker-dealers from pushing the sales of certain funds to their customers in order to generate execution business and to prevent investment companies from directing their securities transactions to certain broker-dealers in order to generate fund sales. See also the topic page on Sales Contests and Non-Cash Compensation.

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