(07-31-2019, 01:17 AM)Predator Wrote:

(07-30-2019, 05:20 PM)mikesez Wrote: An impersonal mutual fund is the kind where you call the general line for Schwab and you get helped by whoever picks up, it'll be someone different every time.

A more personal arrangement is where you have your own broker or dealer, same person every time.

Commissions do not usually violate the fiduciary principle. The fiduciary principle still allows the person or company who helps you to do well while you do well. They are allowed to take a reasonable transaction fee and even to keep a reasonable percentage of your earnings as their commission, as long as both things are disclosed up front.  But they are not allowed to accept kickbacks or favors from their vendors. And they must be willing to discuss all options that a client is considering on a level playing field, not deceptively try to steer the client into something with low returns but good kickbacks.

The fiduciary rule did not allow for commissions unless they sign a waiver called a best interest contract which means the advisor is no longer held to a fiduciary standard but to a lesser "Best interest" standard which is the required FINRA standard for all advising. Commissions present a potential conflict of interest which means all commission based accounts don't meet the fiduciary standard. Fiduciary accounts are always fee based.

"Best interest" allows a client to have input into the individual accounts as long as the Advisor discloses potential risks the clients choices may have.

With fiduciary accounts, clients aren't allowed to make any individual investment choices because allowing someone who is unlicensed and unqualified to have input in what investments to choose would violate the fiduciary standard.