Wachovia pocketing 12b1 fees in Wrap accounts
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Take a look at the allowable list. Hartford funds , Ivy , Aim etc only A shares. The I shares I am told are unintended benefits of previous program resulting from mergers.
Sounds like you are really screwing your clients.[quote=plarki12001]12b1 fees beeing pocketed by firm is no different than AG edwards. Stifel also pockets fees.[/quote]
Actually you do get paid out on t12b1’s within fee based accts at Stifel
You don't know what you are talking about. The amount of institutional share and no load share classes available are VAST.Wachovia pockets 12b1 fees in Ira wrap fee accounts. They have said they will not let American funds f2 share class on the allowable list ( no 12b1) . Only the F1 share class where they can pocket the 12b1 fee. They limit the allowable list to only A shares for many fund families.Merrill Lynch allows the F2 share class.
Whoever is telling you that is full of crap.Take a look at the allowable list. Hartford funds , Ivy , Aim etc only A shares. The I shares I am told are unintended benefits of previous program resulting from mergers.
I have been with the firm for over 12 years. Try and buy a hartford cap ap I share. I am not saying there are not I shares from other fund families like tcw or dodge and cox. The person I talked to was the head of compliance for advisory accounts. You can make your own call to advisory services. ( i don’t want to mention any names). This has been a big crusade for many of us for over 2 years. I do know what I am talking about. We and Ameriprise it seems are the only firms that pocket 12b1 fees in Ira Advisory accounts.
I don’t think this went out so I am trying again. My client in Oregon went to his normal Wells Bank Branch. He asked about the mortgage rates advertised in the branch. The teller said " oh I see you have 450,000 with us " He said I wish. It is more like 50,000. She said , you have other relationships with the bank somewhere that total 450,000. She could see the total the guy has with me. Clients will not like this and I do not this, at all. WB/WFC guys is this true ? Can the bank see my client…my client…my…clients’ asset value. I await response. And this has to be the last straw. In small towns all across america people like to lead privite lives. They do not like for folks to know any more about them than they want you to knw. So the 9.25 an hour knows now what they never wanted anyone but me and the CPA to know. They will not like this folks and the compitition is sure to let them know.
Bank of America rebates the 12b-1 fees back to the customer. You can see it in the account history on Streetscape. The Bank sucks in almost every other way but their mutual fund wrap is fairly decent. They allow a lot of institutional shares (including the super cheap Lord Abbett F shares) and the rebalancing is fairly easy. No haircut to the firm, either. Not that it matters because our payouts suck.
RedPen…I am a WS employee and bank at Wachovia (I havent closed all my accts YET) and am going to the bank branch tomorrow. I will ask the tell when she brings up my bank acct if she can also see my securities acct…will let you know.
Thank you. Just heard from the Finet representative that if the bank can see total relationship then at Finet it will be no different, So much for being independent.RedPen…I am a WS employee and bank at Wachovia (I havent closed all my accts YET) and am going to the bank branch tomorrow. I will ask the tell when she brings up my bank acct if she can also see my securities acct…will let you know.
Ice,
I do not think you are picky. I think you are exactly spot on. For what it's worth, Edward Jones rebates 12b-1s AND revenue sharing back to the client. One of the keys to a fee based advisory account is that there is no financial incentive (other than the fee) for the advisor. These issues are just one more thing for the press and clients to find out about and add it to their "I hate financial firms because....." list.[quote=Redpen]I don’t think this went out so I am trying again. My client in Oregon went to his normal Wells Bank Branch. He asked about the mortgage rates advertised in the branch. The teller said " oh I see you have 450,000 with us " He said I wish. It is more like 50,000. She said , you have other relationships with the bank somewhere that total 450,000. She could see the total the guy has with me. Clients will not like this and I do not this, at all. WB/WFC guys is this true ? Can the bank see my client…my client…my…clients’ asset value. I await response. And this has to be the last straw. In small towns all across america people like to lead privite lives. They do not like for folks to know any more about them than they want you to knw. So the 9.25 an hour knows now what they never wanted anyone but me and the CPA to know. They will not like this folks and the compitition is sure to let them know.[/quote]
Redpen,
I’m with C. (SB)
When my city rolled out the bank branches a few years ago, we were told that if a client of [mine] were to go into a Citibank branch and open an account, the screen visible to the banker would indicate they were a Smith Barney client, and, essentially, hands off, call the FA and let them handle it.
I don’t know if this helps but I can’t imagine they actually allowed that to go on. Our clients want service and confidentiality. I am very with you on bank staff–there’s a reason I don’t refer my clients to open Citibank accounts. The bank staff are horrendous. Phone/call centers are even worse for us.