n NISM Certifications
X NISM Series X
Medium

When a distributor returns part of the commission earned from an AIF to the investors, this practice is called 'Pass-backs', which are considered indirect incentives that can be unethical or prohibited.

Practice question from NISM Series XIX A- Alternative Investments Funds (AIF) Distributors Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Claw-backs

  2. Pass-backs

    Correct answer

  3. C

    Soft Dollars

  4. D

    Trade-In

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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