Full-service brokerage accounts have two types of fee structures -- on a commission or advisory fee
The client also had an advisory fee
agreement with the firm and the third-party custodian that authorized the firm to withdraw fees of up to $3,000 a month from the client's account.
In such event, in addition to the ongoing advisory fee
earned by the advisory firm, the rep can receive an ongoing portion of the 12b-1 compensation.
BANKING AND CREDIT NEWS-February 18, 2014--Federated Fund board OKs advisory fee
cut, buyback extension
This Comment recommends ways to augment mutual fund advisory fee
disclosure requirements by including structured illustrations of fund performance and fees, as well as detailed discussions justifying recent changes in such fees.
Thus, to the extent the taxpayer can demonstrate that a portion of the financial advisory fee
relates to services (other than inherently facilitative services) provided by the financial advisers before the bright-line date, the taxpayer can deduct that portion.
Nonetheless, anonymous sources tell the JofA that fees for fairness opinions often amount to about 25% of the advisory fee
on a deal, although that may vary according to the deal's size.
The Court noted that there might be investment advisory fees
that would be fully deductible "if an investment advisor were to impose a special, additional charge applicable only to its fiduciary accounts" or that a trust might have an unusual investment objective or require special balancing of the beneficiaries' interests, in which case the incremental advisory fee
, beyond what would have been charged to an individual, might be fully deductible.