What does BlackRock's bold decision to change the way mutual fund salespeople in the U.S. are compensated say about the provider/wholesaler model?

Earlier this year, BlackRock switched its pay formula for its U.S. sales force from gross to net sales to better reflect the profitability of the sale. While the gross sale model is still the dominant compensation model, many industry experts champion BlackRock's shift as a reflection of changing industry dynamics that include reduced management fees related to ETFs and cheapest share class requirements by advisors.

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