Option for Account Management Fees
Raymond James allows clients the option to pay account management fees from a different account than the account that generated the fee. When this occurs, the fee will appear on the annual Charges and Compensation Report of the account from which these fees were paid. The performance in the account charged for the fees is lower as a result of having more than one account’s fees charged. The performance in the account that generated the fees is correspondingly higher.
Below is an example:
The account management fees for Account #1 and Account #2 were $2,500 and $3,500 respectively for the calendar year 2020. As per the client’s instructions, the account management fees for Account #1 and Account #2 were paid out of Account #2.
The Charges and Compensation Report under the category account management fees for Account #1 will show $0 and for Account #2 will show $6,000. The account management fees reported match the account that was charged the fees.
The performance for Account #1 will be increased and the performance for Account #2 will be decreased as a result of Account #2 paying both accounts’ fees.