John Hancock Funds
and MFS Investment Management
have implemented changes to wholesaler compensation, InvestmentNews
. The changes are aimed at encouraging diversification in the funds sold by wholesalers.
In Hancock's case, it has taken an unspecified chunk of wholesalers' bonus pay and placed it into a discretionary pool linked to the number of funds an advisor owns and the number of broker-dealers the wholesaler deals with, according to the report. The change took effect this year.
For its part, MFS also embarked on a move to encourage wholesalers to increase the number of advisors they work with.
The program has been in place for a couple of years now. In the past, it made up 5 to 10 percent of wholesalers' compensation; recently, it has risen to the 25 to 30 percent range, the report stated.
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