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Why would any advisor choose to work under such a scheme?
by gress 12y ago
Why would any advisor choose to work under such a scheme?
- tormeh 12y agoEveryone, if it was enforced by law as the only available conditions.
- db48x 12y agoIf it becomes unprofitable (or less profitable than the alternatives) they'll just get out of the business altogether. I dunno if that's a bad thing or not, but you can't say that everyone would go along with it, just everyone who was left.
- JumpCrisscross 12y agoBecause a good performer will make more with performance incentives than under a flat compensation model. That is why hedge funds are structured with performance bonuses - managers believe in themselves.
- gress 12y agoBut good performers today don't have a flat compensation model they have no downside risk and merely need to increase their assets under management.
- syedkarim 12y agoAgreed, so this would reduce the number of advisors in the market. They really don't provide much value anyway.