{"id":4377,"date":"2007-02-23T10:42:07","date_gmt":"2007-02-23T10:42:07","guid":{"rendered":"https:\/\/www.stockbrokerfraudblog.com\/2007\/02\/few_brokerages_disclose_shelf"},"modified":"2022-03-28T14:03:41","modified_gmt":"2022-03-28T19:03:41","slug":"few-brokerages-disclose-shelf","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/few-brokerages-disclose-shelf\/","title":{"rendered":"Few Brokerages Disclose \u201cShelf Space\u201d Agreement Details"},"content":{"rendered":"<p>\t\t\t\tThe SEC is considering whether to change a rule that could require brokers to reveal whether they have &#8220;shelf-space&#8221; programs, which treats certain fund companies preferentially in exchange for payment by the fund.  Its first point-of-sale disclosure rule had pushed for brokerage firms to reveal the actual amount that they received from fund companies that take part in shelf-space programs.  Most brokerage firms, however, are still not abiding by this standard, usually only disclosing the amount that they receive from an agreement without naming the fund company involved. <\/p>\n<p>Even though many brokerage firms are informing investors about any &#8220;shelf space&#8221; agreements they have with specific mutual funds, most of them are still not disclosing the terms of these agreements.  Although brokers are not directly paid by the agreement, a shelf space deal can indirectly influence the sale. For example, according to Merrill Lynch &amp; Co. Inc., funds that do &#8220;not enter into [shelf space] arrangements &#8230; are  generally not offered to clients.&#8221;<\/p>\n<p>Shelf space agreements can vary, although most of the bigger firms receive anywhere from 0.05% to 0.25% of sales or assets. Brokerage firms claim this money supports education, sales, and technology.<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.investorlawyers.com\/blog\/few-brokerages-disclose-shelf\/\"  title=\"Continue Reading Few Brokerages Disclose \u201cShelf Space\u201d Agreement Details\" class=\"more-link\">Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>The SEC is considering whether to change a rule that could require brokers to reveal whether they have &#8220;shelf-space&#8221; programs, which treats certain fund companies preferentially in exchange for payment by the fund. Its first point-of-sale disclosure rule had pushed for brokerage firms to reveal the actual amount that they received from fund companies that [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3805,3800,3760],"tags":[],"class_list":["post-4377","post","type-post","status-publish","format-standard","hentry","category-edward-d-jones","category-merrill-lynch","category-sec-enforcement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Few Brokerages Disclose \u201cShelf Space\u201d Agreement Details &#8212; Investor Lawyers Blog &#8212; February 23, 2007<\/title>\n<meta name=\"description\" content=\"The SEC is considering whether to change a rule that could require brokers to reveal whether they have &quot;shelf-space&quot; programs, which treats certain fund &#8212; February 23, 2007\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/few-brokerages-disclose-shelf\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Few Brokerages Disclose \u201cShelf Space\u201d Agreement Details &#8212; Investor Lawyers Blog &#8212; February 23, 2007\" \/>\n<meta name=\"twitter:description\" content=\"The SEC is considering whether to change a rule that could require brokers to reveal whether they have &quot;shelf-space&quot; programs, which treats certain fund &#8212; February 23, 2007\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards &amp; Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Few Brokerages Disclose \u201cShelf Space\u201d Agreement Details &#8212; Investor Lawyers Blog &#8212; February 23, 2007","description":"The SEC is considering whether to change a rule that could require brokers to reveal whether they have \"shelf-space\" programs, which treats certain fund &#8212; February 23, 2007","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/few-brokerages-disclose-shelf\/","twitter_card":"summary_large_image","twitter_title":"Few Brokerages Disclose \u201cShelf Space\u201d Agreement Details &#8212; Investor Lawyers Blog &#8212; February 23, 2007","twitter_description":"The SEC is considering whether to change a rule that could require brokers to reveal whether they have \"shelf-space\" programs, which treats certain fund &#8212; February 23, 2007","twitter_misc":{"Written by":"Shepherd Smith Edwards &amp; Kantas, LLP","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/few-brokerages-disclose-shelf\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/few-brokerages-disclose-shelf\/"},"author":{"name":"Shepherd Smith Edwards &amp; Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Few Brokerages Disclose \u201cShelf Space\u201d Agreement Details","datePublished":"2007-02-23T10:42:07+00:00","dateModified":"2022-03-28T19:03:41+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/few-brokerages-disclose-shelf\/"},"wordCount":490,"articleSection":["Edward D. 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