Exploring Account Fees and Bonuses: Highlights from Cetera and Avantax Webinar

Posted on October 24th, 2023 at 1:27 PM
Exploring Account Fees and Bonuses: Highlights from Cetera and Avantax Webinar

From the desk of Jim Eccleston at Eccleston Law 

Cetera Financial Holdings senior management hosted an online seminar with Avantax Inc.'s financial advisors to address concerns raised by 3,100 advisors following Cetera's announcement earlier this month that it is acquiring the tax-specialized broker-dealer for $1.2 billion.

Avantax financial advisors likely inquired about the fate of an unpopular $60 annual fee implemented three years ago for advisers' accounts at outside money managers. This fee, known as," direct to fund," (DTF) among advisers, was a method for selling mutual funds directly to clients. Additionally, discussions were expected concerning the clearing firm currently used by Avantax Investment Services Inc., which presently clears trades through Fidelity's National Financial Services, while Cetera utilizes Pershing.

Another potential topic included the distribution of bonuses, referred to as, "transition assistance," in the industry, to Avantax financial advisors. These bonuses are customary in broker-dealer acquisitions to retain advisors and their client base. Questions concerning the bonus may arise because not all advisors are eligible for such bonuses, as clarified in Cetera's September 11th SEC filing announcing the Avantax acquisition. Cetera stated that they would provide transition assistance to certain firms as deemed appropriate, and the allocation of assistance would be at their discretion. Detailed information on this matter will be communicated separately in the coming weeks, as InvestmentNews reports.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

Thank you for your professional assistance with this matter. You are very good at what you do.

John T.

LATEST NEWS AND ARTICLES

December 22, 2025
FINRA Overhauls Arbitration Rules to Rebalance Arbitrator Selection and Codify Forum Practices

The Financial Industry Regulatory Authority (FINRA) has approved significant amendments to its Codes of Arbitration Procedure designed to rebalance public arbitrator selection, increase transparency, and formalize several long-standing practices in the arbitration forum.

December 19, 2025
Industry Groups Press Senate at Advance Financial Exploitation Prevention Act

Several industry associations are urging the U.S. Senate to pass the Financial Exploitation Prevention Act, legislation that would allow mutual fund companies and their transfer agents to delay redemptions when they reasonably suspect elder financial abuse.

December 18, 2025
UBS Warns of Rising Default Risk in Private Credit

A UBS report signals that credit stress likely will intensify next year as borrowers confront inflation, elevated interest costs, and softening consumer conditions.