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

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Directed brokerage is a form of abusive activity where a mutual fund company directs brokerage business to a specific brokerage house in exchange for that brokerage house selling more of the mutual fund company's products to its customers. This can create a conflict of interest for the brokerage house, as they may recommend the mutual fund company's products to their customers even if they are not the best fit for the customer's investment objectives. Market timing and late trading are other types of abusive activity in the mutual fund industry, but they do not involve arrangements between mutual fund companies and brokerage houses. Improper fee assessment refers to charging excessive or undisclosed fees for mutual fund investments.

The Type of Abusive Activity That Involves Arrangements Between Mutual