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Do financial planners receive any fees or commissions from funds they recommend to clients? My mom has several no-load First Eagle funds (5-star ratings from M* so excellent long-term performers), but their expense ratios are huge -- nearly 2 percent. Or maybe it doesn't matter if these funds continue to be strong performers, though others in her portfolio with high ERs have not done so well. Thanks.
Update: Can you give a couple of fund tickers your mom is investing in? It is easy to look up and find out what sort of fund they are. @BRBond mentioned C class shares. They look like no-load but they are actually level loaded (similar to 12b-1). Your mom's advisor is saying no-load but perhaps he got your mom into these C shares and getting his commission. How is your mom's financial planner compensated? Is your mom paying any direct fees for services rendered? (S)he should disclose this in his/her ADV part II which should be provided to your mom.
Fee-only financial planners and RIA's are usually not paid by fund companies and will normally use an administrative or institutional share class. Everyone deserves to be paid for value added. It should just be all on top of the table.
Fee-only planners, as one poster pointed out, are never paid by the fund companies. They use either true no-load funds, institutional-class shares, or access A-class shares without a commission (called purchase at NAV).