What is an "Advisor", Non-Discretionary, Fee Based Account?
RBC Wealth Management's "Advisor", non-discretionary, fee based account is one in which the investment advisor and client still discuss all trades. The difference between this type of account and a standard commission account is that there is no trade cost to do each transaction. Instead, there is an annual fee (charged either monthly or quarterly) that covers all trading, custody, advice, and wealth management services.The fee is usually between 1 and 2% of the value of the assets under administration and is potentially tax deductible if the account is non registered.
The Hillyard Stephen Group feels that the provision of investment advice and wealth managment services under a fixed fee system better aligns the interests of the advisor and client. It allows the advisor to make timely, ongoing investment recommendations and ensures that the client never questions the frequent trading and rebalancing required in a modern, well diversified portfolio. The fee based system also ensures that all clients get professional financial planning and wealth management services without additional cost.