Los Angeles partner Fred Reish was quoted in a MarketWatch article titled, “What the heck is reasonable compensation anyway?“ The DOL’s conflict-of-interest rule goes into effect April 10, 2017, and along with it, the provision that advisers may only charge reasonable fees or earn reasonable commissions when managing your retirement account. Fred notes that reasonable compensation is largely determined by a competitive marketplace and that it must be reasonable, level, and in some cases “neutral.”

“Reasonable compensation is what a transparent and competitive marketplace would pay for the particular set of services,” Fred said. “For example, if an adviser monitors the investment, that would worth more continuing compensation that where an adviser doesn't provide that valuable ongoing service.”

Read “What the heck is reasonable compensation anyway?”

Source: MarketWatch