The firm had expected to pocket some of those compensation savings, but Reilly told analysts that some of the money was being “eaten up” as advisors’ production increases, especially on the independent side where the firm “may get half of that [savings] or less this year depending on if the markets continue to climb.”
Reilly said the firm is finishing negotiations with its mutual fund vendors to change revenue sharing deals and other support payments. The DOL rule has forced B-Ds to re-evaluate and level the pay they get from partners.
The changes should be revenue neutral, Reilly said. “We’ll look overall at who’s paying, what’s fair, what’s fair to clients, and how we price it. That’s going to be something we’re looking at next year, and a focus of our board.”