Commissions, trailing commissions
, management fees and expenses all may be associated with mutual fund investments.
My understanding is that we'll be able to continue to receive trailing commissions
for advice provided prior to the rule's effective date in April 2017.
There may be commissions, trailing commissions
, management fees and expenses associated with mutual fund investments.
During the period, for instance, sales commissions and net recruiting "slowed," and lower asset levels "reduced trailing commissions
, advisory fees and asset-based fees.
Advisors that were earning trailing commissions
on bundled, pre-RDR investment products are also impacted by the new rules.
Typically, trailing commissions
-- the commissions from unfinished deals that follow a broker when they switch firms -- are "rife with concerns," said Laurie McPherson, a partner at the law firm Blank Rome.
The new contracts rewarded agents with more commission up-front for sales, rather than trailing commissions
over several years.
This may include so-called 12(b)1 fees, trailing commissions
, surrender charges and back-end fees.
Also, in July 2008, Jefferies began remitting all trailing commissions
received for frozen ARS held in customer accounts directly to its customers on a go-forward basis, and as of October 2010, had remitted in excess of $868,000.
It now represents nearly 69% of net revenue and includes revenue from asset-based fees, advisory fees, trailing commissions
, cash-sweep revenue and other advisor- and account-based fees.
Presumably, substituting leveled or trailing commissions
for the traditional payout method would be to their advantage, as they could boost sales and their products' internal rate of return and, thus, the price to the consumer.
CCIIO exchange navigators can be licensed as insurance agents or brokers but cannot get commissions or other compensation, including trailing commissions
, from health insurers.