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Nov 4, 2008 2:01 pm

Rumor is that MER reps don’t get paid on trails from mutual funds.  As someone with a fair amount of trails this will seriously impact my revenue.  Is it true?

thanks for the help, NX
Nov 4, 2008 10:16 pm

We get paid trails but no 12b1 fees

Nov 5, 2008 1:03 am

[quote=harshworld]We get paid trails but no 12b1 fees[/quote]
What does that mean?
Maybe i am missing something but arent trails on MF’s actually 12b-1 fees that are paid to the broker?

Nov 5, 2008 2:42 am

exactly

Nov 5, 2008 3:39 pm

[quote=iceco1d]

I'm thoroughly confused by that statement as welll...12b-1 fee = trail. 

Maybe he means that in an advisory/fee-based account, the client gets 12b-1s rebated back to them?

[/quote]   Probably what he means.  However, if he is currently charging 1.25, and ALSO gets 25 bips sent to him, then I guess he would be losing 25 bips if he moves, unless he charges the clietns 25 more.  Jones' advisory program also rebates back the 12b-1's and revenue sharing.
Nov 5, 2008 4:23 pm
 

According to Merrill 12b-1 fees can be a form of trails. But trails are not necessarily 12b-1 fees.  In most cases trails at Merrill are considered the the management fees.  Furhter in most cases when we use mutual funds we put them into a wrap account and Merrill keeps 12b-1 fees and the broker gets a percentage of the management fee but not the 12b-1 fees.  The 12b-1 fees are not considered in the management fees so we do not get to add in the 12b-1 fees when calculating payouts on our grid.

 

Hopefully this helps clear any confusion from my previous post.

Nov 5, 2008 4:34 pm

harshworld-



This is also the way it was explained to me

Nov 5, 2008 8:45 pm

thx