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Is it public information?
Old 01-07-2007, 07:41 PM   #1
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Is it public information?

A financial advisor gets a commission for putting a client into a certain fund. Is there a way to know how much commission the advisor received?
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Re: Is it public information?
Old 01-07-2007, 07:52 PM   #2
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Re: Is it public information?

Check the fund prospectus. It is usually buried in goobledegook and touts as reciprocal advertising or some such crap. Also, examine your agreement with the FA. Not uncommon to find double dips & kickbacks. May not go directly to the FA but to a holding company they work thru or own a piece of.
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Re: Is it public information?
Old 01-08-2007, 06:27 AM   #3
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Re: Is it public information?

Quote:
Originally Posted by crazy connie
Also, examine your agreement with the FA. Not uncommon to find double dips & kickbacks. May not go directly to the FA but to a holding company they work thru or own a piece of.
It's not that subversive. It depends on the funds, but there are some simple rules of thumb.

Share classes

A Shares - Generally the gross DEALER comp is 4.50 in the first year with a trail of .25% yearly after that.

B Shares - Usually 3 to 4.5% with a .25% trail every year after that and a declining rear end sales charge if you sell the fund before 3-5 years

C Shares - Mostly a 1% upfront comp and 1% every year after that.

All the stuff you hear about kickbacks go to the broker dealer, not the FA. The FA usually keeps 30-40% of the above amounts if he works for a large wirehouse like SSB, Merrill, etc. If they work for an independant Broker Dealer they will usually keep 75-95%


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Re: Is it public information?
Old 01-08-2007, 09:19 AM   #4
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Re: Is it public information?

Quote:
Originally Posted by crazy connie
Check the fund prospectus. It is usually buried in goobledegook and touts as reciprocal advertising or some such crap. Also, examine your agreement with the FA. Not uncommon to find double dips & kickbacks. May not go directly to the FA but to a holding company they work thru or own a piece of.
Double dips and kickbacks? Where have you been all these years

If you are referring to "soft dollar" arrangements, NONE of that money goes to the advisors.............

Share classes, loads, are clearly found in the prospectus, on Yahoo Finance, morningstar.com, CNBC...etc..............it's not hidden............... :
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Re: Is it public information?
Old 01-08-2007, 09:47 AM   #5
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Re: Is it public information?

Quote:
Originally Posted by FinanceDude
Double dips and kickbacks? Where have you been all these years
Excuse me! I have a very nice Oppenheimer funds baseball hat, that's a kickback right? Oh wait, I've never used their funds, but they sent it to me anyway.

Also, I'll have you know that Scudder has some of the nicest pens I've ever used.

Man, if the clients only knew I was getting free writing instruments, they would be STEAMED!
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Re: Is it public information?
Old 01-08-2007, 10:00 AM   #6
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Re: Is it public information?

Quote:
Originally Posted by saluki9
Excuse me! I have a very nice Oppenheimer funds baseball hat, that's a kickback right? Oh wait, I've never used their funds, but they sent it to me anyway.

Also, I'll have you know that Scudder has some of the nicest pens I've ever used.

Man, if the clients only knew I was getting free writing instruments, they would be STEAMED!
Best thing I ever got was a wood bat from Pimco, painted black, and of course those wonderful $5 PAcific Life pens......... : :
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Re: Is it public information?
Old 01-08-2007, 12:42 PM   #7
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Re: Is it public information?

Quote:
Is there a way to know how much commission the advisor received?
Ask him how much commission he made on the deal after you check what the prospectus says what you should be charged. If he says he does not know, he is probably not being honest. A good salesman always knows what he made on the deal.

Also check out what the 12b-1 fee is (also prospectus) and ask him how much he will receive on this scam service. Ask him how paying this extra marketing fee will benefit you and watch him squirm.
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Re: Is it public information?
Old 01-08-2007, 02:00 PM   #8
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Re: Is it public information?

Quote:
Originally Posted by mickeyd
Ask him how much commission he made on the deal after you check what the prospectus says what you should be charged. If he says he does not know, he is probably not being honest. A good salesman always knows what he made on the deal.

Also check out what the 12b-1 fee is (also prospectus) and ask him how much he will receive on this scam service. Ask him how paying this extra marketing fee will benefit you and watch him squirm.
mickeyd, I value your opinions in general............but, if you want to know how advisors are compensated, one or more of us could inform you, instead of making wild guesses.............
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Re: Is it public information?
Old 01-08-2007, 02:31 PM   #9
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Re: Is it public information?

Quote:
if you want to know how advisors are compensated, one or more of us could inform you, instead of making wild guesses.............
Thanks for the tip FD. I figured that since I spent a couple of decades in the insurance/investment/employee benefits business prior to retiring that I could add a bit of insight to the Q that was asked.
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Re: Is it public information?
Old 01-08-2007, 02:57 PM   #10
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Re: Is it public information?

Quote:
Originally Posted by mickeyd


Thanks for the tip FD. I figured that since I spent a couple of decades in the insurance/investment/employee benefits business prior to retiring that I could add a bit of insight to the Q that was asked.
Then why state what you did, since you know we are not paid that way??

You confuse me...............
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Re: Is it public information?
Old 01-08-2007, 03:27 PM   #11
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Re: Is it public information?

Quote:
Originally Posted by FinanceDude
mickeyd, I value your opinions in general............but, if you want to know how advisors are compensated, one or more of us could inform you, instead of making wild guesses.............
Excuse me, didn't he say "read the prospectus?" That does sound wild and unsubstantiated! Better he should ask you, a salesman yourself?

Ha
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Re: Is it public information?
Old 01-08-2007, 03:36 PM   #12
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Re: Is it public information?

Quote:
Originally Posted by HaHa
Excuse me, didn't he say "read the prospectus?" That does sound wild and unsubstantiated! Better he should ask you, a salesman yourself?

Ha
Because FD and I have tried to give the OP a little extra help. It's like when somebody asks about the delaer profit on a new car and somebody would tell them to check the invoice. While technically correct, there is always a little more to the story.

So yes, the prospectus will give you the total dealer comp, it doesn't tell you anything about what the rep gets.


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Re: Is it public information?
Old 01-08-2007, 04:14 PM   #13
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Re: Is it public information?

Quote:
Originally Posted by saluki9
Because FD and I have tried to give the OP a little extra help. It's like when somebody asks about the delaer profit on a new car and somebody would tell them to check the invoice. While technically correct, there is always a little more to the story.

So yes, the prospectus will give you the total dealer comp, it doesn't tell you anything about what the rep gets.
I see, Thanks.

Ha
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Re: Is it public information?
Old 01-08-2007, 07:49 PM   #14
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Re: Is it public information?

Thank you all. I didn't know about the trailing yearly fee. No wonder she didn't want us to sell it - she said it was not in out best interests.
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