Tuesday, December 29, 2015

What is a retrocession?

Webster's defines it as a going back. The Financial Times defines it as “kickbacks, trailer or finders fees.” The SEC says that JPMorgan Chase received retrocessions from hedge funds in which it had invested money from its wealthy private-banking clients and did not tell these clients that the bank was getting a kickback.

It cost JP $307 million. Plus it must tell its clients.

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