Presenting the bank's case before the banking royal commission, Daniel Huggins, the bank's executive general manager of home buying, told the commission, 'The longer the loan takes to pay off and the larger it is, then the larger the trailing commission
and that can lead to a conflict - that is a conflict - between the customer and the broker.
According to the SEC, Stanford paid a 1 percent commission upon the sale of a CD "and as much as an additional 1% trailing commission
during the term of the CDs.
However, with the recent ban on entry load for mutual funds, advisors are only earning trailing commission
(from the second year onwards) and passing on the same to their clients in a combination model.
The commission structure still comprises a trailing commission
Advisors don't get a trailing commission
when their clients live past age 100.
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.