Building Fee Based Book at Bank?

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May 15, 2011 11:03 pm

Just wondering if the performance metrics used in bank environments take into the account the huge GDC discrepency between advisors building fee books vs commission books...

I am trying to figure out how to best get started in this business and I am exploring all my options.  

May 17, 2011 7:29 pm

Banks love recurring revenue.  Remember though, they can change the rules anytime they want and your customers are technically the bank's.  Therefore, some advisors feel your better off taking the up-front in that environment.

May 18, 2011 7:30 am

Almost all of the remaining advisors from the Bank of America to Merrill merger started their fee-based book at Bank of America.  In fact, back when it was Fleet Bank (before B of A), the fee-based grid was 50%.  PNC Bank was paying an upfront 1% or 2% in addition to the trails but not sure if that's still happening now.  At a bank, the fee-based platforms will be pretty weak (B of A's  was awful compared to Merrill's).  However, it's easier to gather assets.  Bank brokerage managers tend to be short-sighted, though, and may pay lip service to recurring revenue but would prefer upfront commissions.  

May 19, 2011 9:13 pm

[quote=Eurythmic]

Just wondering if the performance metrics used in bank environments take into the account the huge GDC discrepency between advisors building fee books vs commission books...

I am trying to figure out how to best get started in this business and I am exploring all my options.  

[/quote]

For payouts no one takes account into discrepancy between commish and fee..