![]() While this often can be seen as "eating your own cooking," there are several inherent conflicts that can arise. Sterling Financial Group has marked in their disclosures that they trade recommended securities. Which securities does Sterling Financial Group trade for itself that it will also be recommending to me? Sterling Financial Group receives soft-dollar benefits that could incentivize them to push trades through broker-dealers that provide advantages to the firm instead of through broker-dealers that could provide the best trade execution for their clients. ![]() Side-by-side management can create an incentive for the advisor to favor the larger funds, potentially leading to unequal trading costs and unfavorable trade executions for their retail clients.ĭoes Sterling Financial Group accept soft-dollar benefits? How do these benefits affect the firm’s selection of a broker-dealer partner? This typically occurs when firms manage mutual funds or hedge funds alongside smaller retail accounts. This could be detrimental to a client during down markets.ĭoes Sterling Financial Group perform side-by-side management? How does Sterling Financial Group mitigate conflicts that arise from managing accounts with differing fee structures? For instance, research has shown that mutual funds that use incentive fees take on more risk that funds that do not, and tend to double down and increase their risk following a poor performance. While this may seem like an attractive compensation structure to ensure your advisor is making your money work for you, often, the managers of those products are incentivized to take inappropriate risks to beat their performance benchmark. When performance-based fees are charged, the financial advisor is paid for outperforming a benchmark, typically an index. Some firms receive these fees as payments, which creates an incentive to promote them.ĭoes Sterling Financial Group offer products that have performance-based fees, or does it accept performance-based fees? Will any of my assets be invested in those products? All of these conflicts can negatively impact clients via hidden fees and overall higher costs.ĭoes Sterling Financial Group offer mutual funds that have 12b-1 fees?ġ2b-1 fees increase the total annual cost of owning a mutual fund with no guarantee of higher returns. When firms are dual-registered as broker-dealers, they may be subject to compensation-related conflicts of interest, including revenue sharing from mutual funds, cross-selling of commissioned insurance products, and the sale of proprietary investment products. Is Sterling Financial Group also a Broker-Dealer or are they affiliated with one? What conflicts arise from this relationship? How does Sterling Financial Group mitigate them?Ĭurrently Sterling Financial Group is also a Broker-Dealer or is affiliated with one. Checks take place monthly.Īfter checking the regulatory records of Sterling Financial Group, our system has identified the following question(s) to ask. If you manage to close a deal hopefully it does not get charged back which about 70% do and since they encourage new people who literally know nothing to start teams, the team leads eat the charge backs of their team members who quit rather than the Pete and Brandon.After checking the disciplinary records of Sterling Financial Group, our system found no disciplinary questions to ask. Rather than explaining who you work for, they tell you to say things like “well they didn’t handle this at closing” I’m not sure how that is a legal statement because life insurance is not a component of closing on a home. Most people will think you work for a bank and get very upset when they find out you don’t. You did nothing wrong I promise, the “leads” are receiving deceitful mail that looks like a mail piece from their mortgage company. I set over 20 appointments, almost all no showed (which they say will happen, just try harder or be more bold). After missing all of the signs, I purchased my leads and I’m ready to call. Oh and you must commit to purchasing all of the leads in that area for a 4 week period after you realize the leads aren’t actually leads. You must buy $600-$700 a week, A-A1 leads, “the newer the lead the high the conversion”. Now the “leads”… they refuse to let you purchase 10-20 leads to see what they’re about. Most people you speak to will not qualify for these two if they have any prior conditions. the two that pay them the fastest and highest percentage) of the multiple companies to write business with. You find out they are only allowing contracting through two providers ( Americo/ Forester. After two months getting my license, getting contracted and going through their training. I felt at first his harsh ness was just a test since I’ve worked in sales for many years and have had some terrible managers. No pros at all, this job is for better words a pyramid scheme.
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