In addition, the EGM approved the directors' revised annual remuneration effective on a pro rata temporis basis for the period from the first day of trading of Millicom shares on the Nasdaq stock exchange in the US to the 2019 AGM, including fee-based compensation
amounting to USD687,500 and share-based compensation amounting to USD950,000.
This year, the requirements were: to have a significant majority of business revenue derived from employer-sponsored retirement plans; to serve as a fiduciary; to have regular service delivery and client contact; to be committed to fee-based compensation
; and to use specific outcome-based metrics of plan success with clients, plus have made demonstrable progress with their clients toward those metrics.
Dooc said the application of standard service fee is in compliance with the Department of Finance directive to shift to fee-based compensation
agreement, which will take effect upon amendment of the agency's existing agreement with its partner banks.
I believe the current actions will create the biggest boom in the independent advisory world since its transition to asset-under-management, fee-based compensation
back in the late 1980s.
In January, the independent broker-dealer announced that Webber would take over as CEO from chairman and then-CEO Eric Schwartz, who founded Cambridge 35 years ago and led the IBD world's entry into fee-based compensation
Jim Cracchiolo, chairman of Ameriprise, said during that company's conference call that his company has seen a clear shift to more use of fee-based compensation
Offering fee-based compensation
for variable annuities will bring its own challenges; in particular, common fee levels will be insufficient to meet the economics of products with a number of guarantee riders attached.
But not everybody believes fee-based compensation
is the only possibility in the future.
Broker compensation tends to be higher than advisor fee-based compensation
because broker-dealer products can be more complex, carry higher asset-based percentages, are made part of fund expenses, and are not billed separately.
The law also affects commissions: Advisors will only be able to accept fee-based compensation
on new business.
Considering changes in the broker's compensation structure to emphasize fee-based compensation
versus commissions--or vice versa.
Nationwide Financial Services, Inc., has expanded its retirement plan offerings with a new product "designed by and for retirement plan specialist advisors." Nationwide Retirement Flexible Advantage (http://www.plansponsor.com/Nationwide_Financial_Unveils_Flexible_Advantage.aspx)offers a broad array of investment options without proprietary fund requirements alongside what the firm described as fee transparency, fee-based compensation
, and comprehensive support.