What is ‘crystals’
Double benefit-when broker puts ordering products, fee based accounts, thus it is unethical to make money from both sources. Double benefit, in this context, is rare and may lead to imposition of fines or suspensions by regulatory authorities on the offending broker or their firm. This is usually covertly, with the help of disconnects or otherwise, know the client. A double benefit may take other forms, such as for employees covered by state or municipal pension at retirement, which initiates the beginning of pension payments, and then again in the same role they retired from days, usually with little more than slightly alter the title.
Breaking Down The ‘Crystals’
Double benefit with the help of a broker can take place in managed accounts or wrap accounts in which the broker managed the customer’s account in exchange for quarterly or annual fee flat, typically about 1-3% of assets under management. That fee covers expenses for portfolio management, administrative costs and commissions. An example of a dual benefit is when a broker or financial adviser buys a front-load mutual Fund that earns their fee and then puts it in charge of the account, which will increase the fees they pay. The ethical way to deal with this situation will credit the customer’s account for the amount of the fee. Not to do so would double your money.
Double benefit, as in the example above, action should be taken by regulatory bodies such as the Commission on securities and exchange Commission (sec) and financial institutions (finra). Or maybe a broker or Advisor and fine them or their firm, as well as lack of control in the event of a brokerage firm.
Double benefit: how to avoid it
There are several red flags that investors should be careful to avoid double dipping. For example, clients have to sound the alarm, if the broker receives a management fee, but involves the purchase of mutual Funds from the company that the broker works. Brokers usually receive a Commission for selling their own products, which could equate to a double-dip. Customers should also pay close attention to statements regarding fees and commissions. When he doubts, or when the client feels the broker or Advisor not to be Frank and clear, a lawyer must be involved in the consideration of any messages or information.
Double benefit and pensions
Double benefit with the participation of civil servants and pensions is legal but frowned upon practice, which uses legal loopholes. In essence, he suggests that retirement is only on paper. This allows government officials, such as police, prosecutors, firefighters, school superintendents and legislators to resign from their positions after having served enough years to earn full pension, to begin to collect retirement, and then allows them to be re-employed in public service employment. The end result is that the double Kush takes a pension and a salary simultaneously. Such crystals occur in several States, particularly new Jersey, new York and California. One new Jersey law enforcement officer had managed to gather together $138,000 a year to pay the duties of the County Sheriff and 130,000 $in pension payments from his previous employer, the municipality.