

Should financial advisors have a legal obligation to explain trailer fees in plain language?
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what is a trailer fee Informational
- What are the potential implications for the availability and cost of financial advice? How do trailer fees affect the level playing field between different types of financial advisors and advice channels?
- How do self-regulatory organizations monitor compliance with these rules?
- What are the most important questions investors should ask their financial advisor about fees?
- Are investors more likely to overlook embedded fees like trailer fees due to certain cognitive biases?
- What policy changes might be needed to ensure that the fee structure in the financial industry supports rather than hinders investor wealth accumulation and retirement security? What are some examples of successful transitions away from commission-based compensation models in other industries or countries?
- How transparent are the internal costs and profitability of mutual funds?
- Could some firms be forced to exit the industry if significant reforms are implemented?
- How do the regulations governing service fees compare to those governing trailer fees? What is the relationship between trailer fees and the level of service provided by a financial advisor?
- What data and evidence should policymakers consider?
- How do trailer fees compare to other types of fees? Are trailer fees the same as commissions?
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