FinanceDude
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Aug 3, 2006
- Messages
- 12,483
I assume Edward Jones and Northwestern Mutual reps get more kick backs from other fund companies besides Fidelity. And there is the "keeping up appearances" of (a) not selling fidelity funds, because then clients may wonder why not just go to directly to fidelity for money management and (b) why is my adviser sticking me in more expensive Fidelity Adviser funds with loads instead of the equivalent Fidelity counterparts without loads.
You really think the REPS get kickbacks? As far as Fidelity Advisor Funds goes, I think they will sell that division in the next 5 years to someone else. The internal conflict there is getting worse each year. BTW, the "soft dollar" amounts you are referring to DO NOT go to the reps, they go to the brokerage firm of the reps. This practice has been going on for years, but the new financial reform bill will probably kill it, and that's not a bad thing at all.
FWIW, if someone wants to manage their own money, they go direct to Fido or VG anyways, they don't call an advisor. Advisors can use Fidelity no-loads but many do not............