Prospect Questions

Question 1

Does direct business with Mutual Fund companies count towards breakpoints?

Answer 1

• The policy differs from fund company to fund company but some of the do.
  
  • American Funds will count towards breakpoints.

Question 2

Do we offer HSA accounts?

Answer 2

• No, at this time we do not offer HSA accounts.

Question 3

What are current and excess SIPC Coverages?

Answer 3

• Basic coverage applies up to $500,000 ($250k for cash claims)
• RJFS purchased excess SIPC Coverage through various syndicates of Lloyd’s.
  
  • Provides an aggregate firm limit of $750m
  • Sub-limit of $1.9M per customer for cash above the basic SIPC

Question 5

Can qualified account ACAT fees that are being reimbursed to a client for deposited directly back to Qualified Accounts?

Answer 5

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• No, although its common practice in the industry, we cannot currently do this.
  
  • We are partnered with a number of firms through SIFMA that asked for clarification from the IRS on this particular issue.
• Currently we will issue a check or deposit into a non-qualified accounts.

Question 6

How are comissions and advisory fees usually paid to an LLC?

Answer 6

• Because of a FINRA rule about comissions being paid to an individual they cannot be paid directly to an LLC.
  
  • Advisory Fees however are allowed.
• Typically fees and comissions will be paid to an individuals brokerage account then can be swept into the LLC checking.