New York, NY asked in Stockbroker Fraud for New York

Q: Is there a chart some place that tells me what "excessive" fees are?

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1 Lawyer Answer
Barry E. Janay
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Answered
  • Livingston, NJ
  • Licensed in New York

A: No chart, but here is the best guidance:

"Article III, Section 4 requires any NASD member that acts as an agent for its customer to charge only a 'fair commission or service charge, taking into consideration all relevant circumstances including market conditions with respect to such security at the time of the transaction, the expense of executing the order and the value of any service he may have rendered by reason of his experience in and knowledge of such security and the market therefore.' (NASD Manual, paragraph 2154.) Disclosure does not justify a commission or markup that is unfair or excessive in light of all other relevant circumstances."

http://finra.complinet.com/en/display/display.html?rbid=2403&record_id=1799&element_id=1558&highlight=excessive#r1799

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