While there is some confusion around MFD & RIA, below is what i gather from the @fpstudycircle meeting today
(1) MF distributors cant charge fees and can only make monies through commissions (1/4)
(1) MF distributors cant charge fees and can only make monies through commissions (1/4)
(2) Individual RIAs (clients less than 150) cant make commission income and can only charge fees. Individual RIAs has to advice direct where ever there is available and commission products are allowed where ever direct not available like corporate FDs etc. (2/4)
(3) Corporate RIA entity can run both fee based & distribution. Depending on the clients requirements the entity can segregate the client 2 fee based or distribution services but cant make money through fees & distribution both 4m the same client. This is client level segregation
(4) Fees charged by RIA can be a maximum of 75,000 when flat fee model is selected or 2.5% of the AUM without any maximum limit. (4/4)
