Tuesday, January 10, 2017

Should there be trailer fees on Mutual funds?

Trailer fees are fees that are paid by mutual fund companies to financial advisers to recommend their products. Does this line up? No as financial advisers have a fiduciary role in managing their clients money. Financial advisers should be recommending the most appropriate fund and get compensated on how well those funds do. Why should a client not make a return and the adviser keep getting paid?

Alright, well good news from Ontario. There is a plan to ban trailer fees!

http://www.theglobeandmail.com/report-on-business/mutual-fund-fee-ban-would-bring-low-cost-players-into-the-market-report/article33562819/

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