Fee-based compensation

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.
References in periodicals archive ?
To be considered for the award, a retirement advisor team had to: have a majority of business revenue derived from employer-sponsored retirement plans, serve as a fiduciary, be committed to fee-based compensation and use outcome-based metrics of plan success with clients.
Considering changes in the broker's compensation structure to emphasize fee-based compensation versus commissions--or vice versa.
That makes sense, according to Nolan Baker, CSA, co-founder of the Retirement Resource Center in Maumee, Ohio, because it more closely aligns advisors' financial interests with those of their clients, while also meshing better with fee-based compensation structures.
Just as broker-dealers are implementing a fee-based compensation choice, CPA financial advisers have learned that the commission versus fee quandary is a nonstarter.
Continued Migration Toward Fee-Based Compensation -- The majority of advisors' current compensation comes from commissions2.
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.
Margin pressures in this business are expected to continue as pharmaceutical price increases slow from historic levels and Cardinal Health transitions to a new fee-based compensation model for the distribution services it provides pharmaceutical manufacturers.
Investments Solutions Builder follows the launch of Nationwide Retirement Flexible Advantage(SM) last fall, which offers retirement plan specialist advisors a diverse selection of investment options, no proprietary fund requirements, fee transparency, fee-based compensation and comprehensive support.
As of July 1, 2004, Sepracor will only be responsible for providing sample coverage for ASTELIN under a fee-based compensation program through the duration of the amended agreement.
It also explores key trends, including the shift from the occasional advisor to specialists, the move to fee-based compensation models, advisor assumption of a fiduciary role and the movement of specialists to non-traditional channels and how providers are responding to accommodate them.
The fee-based compensation system clearly places the financial advisor on the same side of the transaction as the client," Warren said.
Nationwide Retirement Flexible Advantage(SM)offers retirement plan specialist advisors a diverse selection of investment options, no proprietary fund requirements, fee transparency, fee-based compensation and comprehensive support.