I’m concerned about fees charged to employees after accepting an offer
in which the salary and/or production payout were accurate. I suppose
this falls into two categories, the first of which are fees charged by THE
FIRM itself and the second are outside fees that the advisor was not told
would need to be covered but are still mandatory. I find this practice
increasingly common amond employers who attempt to recruit FAs and
while giving the ins and outs of the comp plan, conveniently forget to
mention anything on the negative side. Common aspects would be phone
or mailer charges, parking charges for building, required error and
omission insurance, etc. I personally got hit with one of these in the form
of a massive monthly parking bill in an area where no other spots or
alternative garages exist.
During the interview process I asked if there are any charges I could
receive that would not be reimbursed by the company. I was told that my
car miles and dining expenses for any prospective clients were my
responsibility (although a decent tax write off) but all other fees
associated with the position would be taken care of including those
associated with registering licenses and continued education.
This is WAY to common because the employee doesn’t seem to have
much of a choice after already accepting the position. The employee also
has no recourse to the department of labor, having signed an arbitration
agreement. Who wants to go through an arbitration for a nominal charge?
Almost every advisor I know who’s accepted a new position has had this
What has your experience been with fees that were undisclosed up front
but charged after accepting the offer? What are creative ways to combat
Thanks for the heads up. I will definitely do this next time. I really thought I’d done a lot of due dilly just by reading the entire five page contract and asking the specific question. I’ve come to learn by speaking to others in the industry that there’s almost always something to nickle and dime the rep afterward.