For mutual fund and ETF firms to succeed in intermediary distribution, they will increasingly require wholesalers to be more responsible for selling both types of products, while also increasing the quality of assets raised - and for this added responsibility, wholesalers should have their compensation plans restructured.

kasina, the search and consultancy company, says the traditional gross sales-based plans are not keeping pace with changes in the industry, including the emergence of ETFs sold through advisors. It will be difficult to maintain existing levels of wholesaler compensation without changing the fundamentals of compensation plans.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.