Many years ago trails were a means of ensuring that Advisers were incentivized to stay in touch with investors/clients with the institutions. The money was paid out of the Funds of the Institutions; not out of investors/clients accounts. These trails still in existence still serve the purpose they were designed for; SAVE THE INSTITUTIONS from having to phone their investors/clients at least every year and rely on the Advisers to spend their time doing this necessary chore. Both the institutions and Advisers gained NEW BUSINESS through this system. Even some instances would arise where the particular investment would no longer be appropriate and should be shut down entirely or replaced by a better product.By not paying trails the Institutions will keep the money, and advisers and institutions will no longer be incentivised to keep in touch with investors/clients. Yes, the Insttituions will save money but will lose NEW BUSINESS!!!! The investors /clients will not be better off financially but WORSE OFF because they will find that no one continues to talk to them to examine their new or changed needs.Only a certain breed of person would want trails to stop and that breed are not interested in the BEST INTERESTS of the Investors/clients, simply a POLITICAL AGENDA aimed at wrecking our Industry!.
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