Q120 - Are There Platform Fees In The RIA Model?

“Platform fees” in our industry are the “resort fees” of the hotel industry.Just as a hotel room rate can be distorted by the addition of mandatory resort fees……payouts (particularly at independent broker/dealer models) are frequently distorted by additional platforms fees.The existence of a fee by itself is not necessarily a bad thing, provided the value and services received in return are commensurate.The first step in determining that is identifying when platform fees are present.While such fees are most often associated with independent broker/dealer models, there are scenarios where they could be applicable in the RIA model as well.In this episode (#120) of the Transition To RIA question & answer series, I explain when platform fees exist in the RIA space.Come take a listen!P.S. Prefer video? You can find this entire series in video format on Youtube. Search for the TRANSITION TO RIA channel.Show notes: https://TransitionToRIA.com/are-there-platform-fees-in-the-ria-model/About Host: Brad Wales is the founder of Transition To RIA, where he helps financial advisors understand everything there is to know about WHY and HOW to transition their practice to the Registered Investment Advisor (RIA) model. Brad has 20+ years of industry experience, including direct RIA related roles in Compliance, Finance and Business Development. He has an MBA and has held the 4, 7, 24, 63 & 65 licenses. The Transition To RIA website (TransitionToRIA.com) has a large catalog of free videos, articles, whitepapers, as well as other resources to help advisors understand the RIA model and how it would apply to their unique circumstances.