Advisors who move their accounts onto Cetera Financial Group's brokerage network will get a better deal if they also convert their commission-based business to a fee-per-service basis.
The Los Angeles IBD, which currently works with 5,000 reps and other advisors across its three brokerage brands -- Financial Network Investment Corp., Multi-Financial Securities, and PrimeVest -- is hoping to use the policy as a recruiting tool as well as a behavioral incentive for current affiliates to change their approach.
Cetera's Net New Assets program gives advisors who bring $2 million to $5 million in new assets to the platform a 20% piece of the administrative fees it generates from those assets.
The payout ramps up until at $100 million, the advisor gets the entire administrative fee.
Newcomers to the firm can count their entire AUM as "new assets," thus potentially earning a big bit of added revenue for transitioning those accounts to a fee-for-service model.