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Why AUM-Based Fees Don't Meet Fiduciary Standards

Bert Whitehead | Advisor Perspectives, April 2018

Summary: The Investment Act of 1940 specifically permits advisors to charge fees as a percent of assets. This act was intended for managers of mutual funds. It was not intended for advisors serving the general public, because of the conflicts of interests that arise when providing personal financial planning services. One such conflict is the need to charge variably based on asset classes.

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