A new program by Cetera Financial Group will offer incentives to advisors who grow their fee-based business through the broker-dealer.
The Net New Asset Program will pay advisors who increase their advisory business at Cetera-owned Financial Network and Multi-Financial up to 100% of their administrative advisory fees. Based on a growing scale, the more new assets an advisor brings to Cetera's programs, the greater rebate they receive.
Advisors who increase their assets by $2 million to $5 million will receive a 20% administration fee rebate, while $5 million to $10 million will receive 30%, continuing up to $100 million to receive 100% in fee rebates.
In addition, and as a recruitment tool, Cetera will treat all assets moved onto the advisory platform from commissioned based accounts as new assets.
"This reward structure is vital support for advisors in the midst of transitioning their relationships," said Barnaby Grist, Cetera's executive vice president, wealth management. "Clients are increasingly asking for ongoing help in meeting their financial goals. In addition, increased regulatory scrutiny, such as on 12b-1 mutual fund trails, is leading many of our advisors to look to create more consistent revenue to pay for the support they provide."