An article posted in the Wall Street Journal details the harsh truth that many clients of one major Wall Street brokerage firm will have to face this year. Up to 50% HIGHER FEES. In an attempt to streamline the fee structure, the conglomerate holding corporation has passed down a new fee schedule to its subsidiary to be implemented firm wide before the end of 2015. The change comes as a result of a new platform release which will force clients to renegotiate their agreements with the Wall Street powerhouse, meaning new contracts and new rates. Those who will be notified of this fee increase will have plenty to be disgruntled about, but even worse may be those who don’t get a fee decrease where applicable. According to WSJ, “If a client currently pays more than the set minimum fee, an adviser isn't required to reduce their fees, advisers said. In fact, advisers have a strong incentive not to do that: Each is paid in direct relation to the revenue he generates for the company. Many set fees above the minimum, when they feel they can.”
Check out the table below to see what the fee schedule for accounts under the new platform will look like.
Check out the link below to read the full article from the Wall Street Journal website.
http://online.wsj.com/news/articles/SB10001424127887323681904578640322042802396