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Fee-Based Compensation

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Fee-based compensation
Payment to a financial adviser of a set hourly rate, or an agreed-upon percentage of assets under management, for a financial plan. When the plan is implemented, the adviser may also receive commission on some or all of the investment products purchased, which would be fee-and-commission compensation.

Fee-Based Compensation
A way to pay a broker, investment adviser or money manager in which the client gives a set hourly wage and/or a percentage of the assets under management in exchange for financial services. The contrasts with commission-based compensation, though some managers receive a combination of both.


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Overhauling traditional front-loaded annuity compensation structures makes sense in light of the advisory community's broadening embrace of fee-based compensation, says LIMRA's Joe Montminy.
For the middle- to larger markets, he said, brokers will go unscathed because man), have moved away from commissions to fee-based compensation.
That means obtaining maximum returns for the individual's personal or corporate risk tolerance on a fee-based compensation method.
 
 
 
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