Fund companies can drop their sales charges for One Source because they do not have to pay brokers.
Merrill discontinued the practice of paying brokers more for selling shares of its own funds several years ago, but many other big brokerages have not.
It plans to support changes like paying brokers not by commission but by the performance of the investments they recommend.
Among other regulations, it would prohibit lawyers from paying brokers to steer potential class-action plaintiffs to them.
The market for used newspapers in the Northeast has already become so flooded that some communities are paying brokers to take them away.
Since then, competition for options business has grown ever more steep - but the competition has taken the form of paying brokers for order flow.
Consider the move by brokerage firms away from paying brokers on commissions.
Paying outside brokers handsomely to sell Putnam funds practically guaranteed their success.
And the study would like dealers and specialists who pay brokers for steering trades their way to disclose the practice to customers.
Market makers, who have paid brokers for steering business their way, will pay less, and may even charge for doing some trades.