The shares are sold by brokers attracted by high commissions.
Among other things, firms were arm-twisted not to pay high commissions.
They want to receive the most reward for their investment, and they're drawn to high commissions.
They argue that high commissions affect a fund manager's performance, which is measured after all charges, including commissions.
They used to enjoy a hidden subsidy on big trades from the high commissions charged to small traders.
The critics complain of high commissions -- usually 10to15percentent of the total settlement but sometimes higher.
But if regular overseas travel is the rule, then the high commissions, unfavorable exchange rates and delivery costs become excessive".
Visits to high commissions and local dignitaries were once commonplace on tour and Taylor was an invaluable asset.
The salespeople promote these life insurance policies because they offer high commissions, not because they present any real value to the consumer.
But analysts say that the high commissions leave LPL less money for compliance and can attract brokers interested in skirting the rules.
In reality, broking firms have every reason to push in-house products, thus earning fees from sales and management, or outside funds carrying high commissions.
