Fees, fees, and more fees. It’s a part of the business of being an advisor. But there’s one fee that advisors frequently overlook or simply don’t fully understand – their Global Admin Fee (GAF).
In fact, many advisors don’t even know what their GAF is, or the impact it can have on their pay stub. It’s only natural. Over time, complacency sets in.
That’s a problem. Not only can it impact their existing pay, but it can represent a nasty surprise if they switch firms. Advisors may base a move on things like transition compensation, technology, product offerings, marketing support, and brand name. They forget about GAF, which can vary from firm to firm. Further complicating matters, it’s hard to know what the GAF is at the broker dealer (BD) down the street.
“It is incumbent on any advisor contemplating a move to consider what they are currently paying as far as a GAF and what they will be paying if they make the move to a new BD,” said Chris Stacey, the COO of 3xEquity, the industry leader in facilitating moves within the wealth management space.
However, it takes work to make that determination. The fee may be hidden, buried behind some other term, or broken up among multiple different fees.
“Doing an apples-to-apples comparison isn’t easy because fees can be called different things across the industry,” added Stacey. “Furthermore, a new firm may present a rosier picture of what the GAF really is.”
Fortunately, there are resources, like 3xEquity who can help you get to the real truth about GAF. They help advisors sort out the semantics and identify exactly what they are paying and how that compares to similar fees at other BDs.
“It shouldn’t be a secret,” said Stacey. “Advisors deserve to know exactly what they are getting when they pursue other opportunities.”
Are GAF fees lower if you move firms? Engage with 3xEquity today at 3xEquity.com/GAF and find out your options (all while you remain 100% anonymous).