Does anyone know what some of the independent firms offer in acat allowances? We are currently negotiating and would like to know what percent of T12 most firms would give.
A lot of firms will take a look at your book to see how many brokerage accounts you hold versus direct and that will be added to your overall transition package, which should also cover licensing fees, E&O, technology and marketing/start up costs if you are coming from a wire.
LPL paid for all contra-ACAT fees on accounts over $50k completed
within 120 days of coming on board. It was paid in the form of a credit
directly to my “run” after the 120 days had elapsed. This allowed me to
cover client’s fees, if I chose, then be reimbursed, or keep it as
profit if the client ate the fee.
I got 3% of trailing 12, which ended up being plenty. I’ve heard of people negotiating quite a bit better than that, but in this environment, that game may have changed.