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Client Compensation: Show Me the Money!

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Client Compensation: Show Me the Money!

Believe it or not, the USA and the Investment Advisers Act of 1940 don't exactly crack the whip on investment adviser firms when it comes to client compensation. About the strongest language they use is to say that advisory fees must not be "unreasonable," a fluff term if ever there was one. It basically means that advisory firms should charge what other advisory firms are charging.

The USA allows the following types of fee arrangements:

  • fees based on a percentage of AUM 
  • a flat dollar amount...

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