Ch.6 · Distributor Commission Structure · hard
What is 'trail commission portability' when an investor changes their distributor?
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EXPLANATION
When an investor formally changes their distributor (by submitting a distributor change request to the AMC/RTA), the trail commission on the existing AUM begins flowing to the new distributor going forward. The investor need not redeem — the AUM simply gets reassigned to the new ARN, and future trail goes to the new distributor.
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