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Manager Pay-to-Play: What's the Rub for Advisors?

By Crucial Clips     January 20, 2016
The following text is a transcript of a portion of a speaker's presentation made at an industry conference or during an interview. This transcript solely represents the view of the individual who spoke, and not the view of Financial Advisor IQ or any other group.
Source: FA-IQ, Jan. 20, 2016 

I'm Thomas Coyle. I'm a senior reporter and associate editor here at FAIQ -- and I'm confused about something.

I'm confused about an aspect of the relationship between asset managers and the big brokerage platforms -- including turnkey asset management programs (TAMPs).

It's widely known these sponsors make money managers sing for their supper. Or maybe that's not fair. Maybe it's widely known that managers have figured out it doesn't hurt to provide market updates and other materials for use either by FAs on the platform or their clients.

I've also heard managers are asked -- or find it prudent to volunteer -- to provide pretty extensive training on aspects of investing and practice management, and that this stuff is linked to how prominently the manager's wares are displayed to advisors.

So, is this paying to play or simply providing added value? How deep does the quid pro quo here go? And how nefarious is it?

Like I said, I don't know.

But you do. So tell us.

There's a comment section below this video. Tell us if the relationship between managers and investment-platform sponsors is unfair to anyone involved, including advisors and consumers.

All right, so again, I’m Tom Coyle, and this is FAIQ.