Question for MER brokers

or Register to post new content in the forum

 

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Nov 4, 2008 9:01 am

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 5:16 pm

We get paid trails but no 12b1 fees

Nov 4, 2008 8:03 pm
harshworld:

We get paid trails but no 12b1 fees


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 4, 2008 9:42 pm

exactly

Nov 5, 2008 10:39 am
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?

 
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 11:23 am
 

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 11:34 am

harshworld-



This is also the way it was explained to me

Nov 5, 2008 3:45 pm

thx