News | 11.19.19
SEC Should Probe Rampant, "Opaque" Revenue-Sharing Deals: Morningstar
Controversial fee structures between fund platforms and brokers and dually registered advisors have been replaced with new types of revenue-sharing arrangements that are more opaque and difficult to pin down, according to a Morningstar report. Morningstar is calling on the SEC to start collecting data on these arrangements because of the hidden, potentially high costs being passed down to investors. New research shows that dually registered advisors are indeed inclined to put clients in underperforming funds that share revenue, Morningstar says. The study shows how that can hurt investors, and not just in the broker setting.
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