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Fees to employees

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Jun 16, 2007 10:06 pm

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

this afterward?

Jun 20, 2007 5:17 am

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.