Currently the advisor receives the 12b-1 fees; however there is a 20 bps haircut on the wrap fee from the company.  For example, if you charge the client a 1% wrap fee on $100,000, $800 actually hits the grid.  After the new platform integration taking place in October of this year the 20 bps haircut goes away but the firm keeps the 12b1 fees.

Thanks…so to make sure I understand, after October, the FA won’t get any of the 12b-1, but in return, will get the full wrap fee to the grid?

and remember, $15 tkt charge on ALL buys and sells, even proprietary. (except American funds those are $80)

And you won’t get the full fee to grid, they are keeping 5bps at the firm. 

Ameriprise sucks

I agree with skbroker, Ameriprise sucks, its a deceiving company, they called themselves financial planners but now there is not even a financial planning department in home office.  I am amazed that they are still in business after all the fines that they have paid

[quote=finpro09]I agree with skbroker, Ameriprise sucks, its a deceiving company, they called themselves financial planners but now there is not even a financial planning department in home office.  I am amazed that they are still in business after all the fines that they have paid[/quote]

They suck.  I was a bit surprised by this quote from their website.

"*Ameriprise helped pioneer the financial planning process more than 30 years ago. Our unique Dream > Plan > Track >®
approach is about more than just numbers, it’s both science and art. We
have more financial planning clients and more CERTIFIED FINANCIAL
PLANNER™ professionals than any other company in the U.S. based on data
filed at adviserinfo.sec.gov and documented
by the Certified Financial Planner Board of Standards, Inc. as of Dec. 31, 2008."