Critics of commission-based compensation for brokers say the practice is rife with conflicts. The National Association of Personal Financial Advisers, for example, tells investors that an advisor who has a financial stake in the investments they recommend "faces an inherent conflict of interest and cannot be considered objective and unbiased," according to its Web site. The group members aren't allowed to accept compensation such as commissions, rebates, or awards.
Spokesmen for Securities America Inc. and QA3 Financial Corp. didn't immediately return calls requesting comment.
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