Monday, November 16, 2015
The socio-economic impact of traler commissions
Trailer commissions create a conflict-of-interest between a dealer representative ( "advisor") and a mutual funds client. This can impair client retirement accounts due to mis-selling and over-selling. With $1.2 trillion of mutual funds having been sold to Canadians , billions of dollars are involved. Read the article If you want to see the long-term impact of fees on returns try the fee impact calculator at www.getsmarteraboutmoney.ca .Other trailer related issues that have unduly cost Canadians tens of millions of dollars include mutual fund churning and the impact of paying for advice to discount brokers who could not and did not provide that advice. We have covered those abuses in previous posts.