Massachusetts regulator mulls greater fee disclosure

State-registered RIAs would have to provide fee table for greater transparency

Feb 8, 2018 @ 10:39 am

By InvestmentNews

Securities regulators in Massachusetts are asking for comments on a proposed regulation that would require investment advisers registered with the state to create a fee table to be given to new and existing advisory clients.

"Recent changes that have occurred in the financial services industry, many fueled by fintech innovations, have resulted in an evolving fee structure for investment advisers," William F. Galvin, Secretary of the Commonwealth, said in a release.

"It is no longer the case that advisers only charge their clients a fee for assets under management. It is not uncommon today for consumers to pay different types of fees for advisory services, including retainer fees, subscription fees, or third-party robo-advisers fees," he said.

The proposed table is intended to address these new compensation models by providing fee transparency. The table is also intended to enable customers to comparison shop among advisers," he said.

After the initial comment period, the state's securities division anticipates that a formal solicitation of comments will follow.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Why a sabbatical is the perk advisory firms can’t overlook

Financial advice firms offering this benefit praise the impact its had on their businesses.

Latest news & opinion

Finra anticipates oversight role for SEC advice rule

CEO Robert Cook says one area for examination could be the proposed requirement that brokers act in the best interests of their clients.

IBDs with the most CFPs

Here are the 10 independent broker-dealers that employ the most certified financial planner professionals.

Why we must create a more diverse and sustainable financial planning profession

CEO explains how, why a firm should commit to conscious inclusion.

Pope Francis wants financial advisers to work like fiduciaries

Vatican bulletin admonishes advisers who act against the best interests of their clients.

Wells Fargo sees slowdown in advisers exiting this year

The 2016 banking scandal and public relations fiasco had alienated some of the firm's advisers.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print