This is part of our ongoing series in which we review “kick backs” that companies receive and the hidden fees the consumers are left to pay. A few weeks ago we discussed the Edward Jones’ Revenue Sharing Dislcosure, which you can read HERE.
This week we take a look at Merrill Lynch and the compensation their Advisors and their Managers receive from the companies whose products they sell. You can review the Merrill Lynch Client Disclosure Pamphlet HERE.
On page 7 of the pamphlet the highlighted section states that “Merrill Lynch makes available to its clients shares of those mutual funds whose affiliates have entered into contractual arrangements with Merrill Lynch that generally include the payment of one or more of the fees described below. Funds that do not enter into these arrangements with Merrill Lynch are generally not offered to clients.”
This disclosure shows that there is an obvious conflict of interest for Merrill Lynch
advisors and managers, possibly effecting their judgment, just as the Edward Jones’ disclosure revealed.
Michael Canet is a Registered Representative with TCM Securities, Inc. and can offer securities through TCM Securities, Inc., Member FINRA/SIPC.