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Wealth Professional | 12 Oct 2015, 09:00 AM Agree 0
If regulators get their way everyone but the bank-owned firms could be fighting for a shrinking piece of the financial advisory pie
  • Peter | 16 Oct 2015, 05:17 PM Agree 0
    A couple of interesting observations from this article ....

    1. Are the regulators implying that DSC funds offer lower returns than no load funds or that DSC funds are riskier than no load funds? As with any investment, it is the advisor's job to assess the client's current situation and determine the best funds and mode of commission that are in the best interests of the client.

    2. Yes the banks can offer salaries to young advisors. Let us not forget that these "salaried" advisors are under huge pressure to produce and to meet their quotas each and every year (or quarter) or risk losing their salaried jobs. So are these salaried advisors who are in constant fear of losing their jobs doing a better job for the client than a DSC advisor?

    I have sold DCS, no load and low load funds after a thorough discussion with my clients. There is absolutely nothing wrong in selling DSC funds to clients if the advisor has done a proper assessment and analysis of the client's specific needs.
  • kathy Waite Your Net Worth Manager | 22 Oct 2015, 10:50 AM Agree 0
    I now work as a fee only but agree with Peter pre 2011 I sold DSC after discussion with my clients. There is absolutely nothing wrong in selling DSC funds to clients if the advisor has done a proper assessment and analysis of the client's specific needs.AND HAS MADE THE CLIENT AWARE OF EXIT FEES and they have an emergency fund so they do not cash in. Banks put huge pressure on staff, if you do well they bump your target, if you leave you don't take your clients. Yet customers think banks look after them and don't charge them, myth of the century .
  • Benjamin Felix (PWL Capital) | 29 Oct 2015, 02:17 PM Agree 0
    There is a tremendous amount of evidence demonstrating that fees are the strongest predictor of investment returns. Higher fees = lower long-term returns. Any fund that offers the DSC will have fees of 2%+ (for equity and balanced funds). Independent advisors selling DSC funds are not truly independent, they are slaves to the mutual fund companies paying their commissions, and they are selling products with a well-documented expectation of long-term underperformance as compared with a benchmark index.
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