5-67 The type of abusive activity that involves arrangements between mutual fund companies and brokerage houses is

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Directed brokerage involves mutual fund companies funneling trades to brokerage houses in exchange for increased business or access to their clients. This can result in unfair advantages for certain brokerage firms and is considered an abusive activity. Market timing and late trading are other types of abusive activities, but they do not involve arrangements between mutual fund companies and brokerage houses. Improper fee assessment is also a type of abusive activity, but it is not related to mutual fund companies and brokerage houses.

5-67 the Type of Abusive Activity That Involves Arrangements Between