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Steven Stone and Wrap Fee Programs Form

Steven Stone and Wrap Fee Programs Form

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hello and thank you for joining today's webinar best practices to master an SEC exam our presenters today join us from North Point compliance Victoria Hogan and Colleen Mont morale and up next we have ROTC programs ROTC programs around the 2017 exam priorities and we're seeing them once again for 2018 one of the main concerns here is whether or not a ROTC program is suitable for a client often wrappy programs have a higher fee than a non rep C program and if an account is not actively trading clients may pay a higher fee in a ROTC program than they would if they paid separately for advisory and brokerage services one of the tests you can perform to check rep be suitability as calculating portfolio turnover one thing you obviously see when looking at portfolio turnover is churning or if an account is frequently traded however the concern with a wrap fee program is the opposite what you want to look for is low portfolio turnover or what is referred to as a reverse churning this can be an

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