This week’s segment: Signing bonuses to brokers–the industry’s dirty (big) secret
The secular bear in stock markets since 2000 has brought disappointing returns and a trend of consolidation among financial advisory firms. Many brokers and advisers have been moving from firm to firm and convincing their clients to follow them on promise of better client products and service. What they usually don’t explain however, is that the broker is typically paid a large signing bonus each time they succeed in moving client assets to new firms, meant to be recouped by the new firm over time through fees charged to client assets. Here is a direct podcast link.
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