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Question

GoForBroke Broker-Dealers has distributed a list of ten mutual funds that it suggests are top-notch funds worthy of recommendation

Accepted Answer

Yes. By distributing a list naming specific funds that coincidentally all happen to execute a lot of trades through GoForBroke, the broker-dealer is violating FINRA’s anti-reciprocal rule.

Answer

No. GoForBroke only distributed a list of fund names; it did not offer its agents any form of additional compensation for selling the funds on that list.

Answer

No. As long as the list consists of more than five funds, GoForBroke has not violated any FINRA rules.

Answer

Yes. GoForBroke is prohibited from selling shares of mutual funds that execute their trades through the broker-dealer. This rule is in place to avoid conflicts of interest.

GoForBroke Broker-Dealers has distributed a list of ten mutual funds that it suggests are top-notch funds worthy of recommendation by GoForBroke’s agents. Coincidentally, all the funds on this list also happen to be those that execute the majority of their trades through GoForBroke.

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