With the Level Compensation Program, advisers are able to choose from a menu of fund families/share classes that offer either 25 or 50 basis points, across the board, as 12b-1 compensation, of which the adviser gets 100% of the compensation.
Other benefits of the compensation program include:
- Revenue sharing amounts paid to CDM are credited against administration and record keeping charges, and excess amounts are credited back to the plan;
- Fund flexibility and the lack of any proprietary requirement, allow for the development of a competitive menu fund options within a plan.
- The plan sponsor is able to manage fiduciary responsibility by determining and justifying adviser compensation.
According to the release, the CDM Fee-Based Program offers:
- Flexibility through an open architecture fund and share class selection;
- Excessive revenue sharing and 12b-1 amounts are credited back to the plan;
- Easier management of expenses through fund and share class flexibility;
- The independence to act in any consultative capacity agreed to with the plan sponsor.
- Flexibility through open architecture fund and share class selection.
- Excess revenue sharing and 12b-1 amounts are credited back to the plan.
- Easier management of expenses through fund and share class flexibility.
More information about both new CDM Programs, including pricing and available fund selections, is available here