The type of abusive activity that involves arrangements between mutual fund companies and brokerage houses is

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Directed brokerage involves arrangements where a mutual fund company enters into an agreement with a brokerage house to receive preferential treatment in exchange for the brokerage house being directed to sell a certain amount of the mutual fund company's shares. This can be a form of abusive activity as it can result in the brokerage house promoting the mutual fund company's funds to the detriment of their clients. Market timing and late trading are other forms of abusive activity in the mutual fund industry but do not involve arrangements between mutual fund companies and brokerage houses. Improper fee assessment is not a form of abusive activity related to this topic.

The Type of Abusive Activity That Involves Arrangements Between Mutual