advice-based programs in which clients are required to approve all transactions in the program. The category originated in the full-service brokerage channel with the fee-based brokerage (FBB) programs. Using an open architecture concept, FBBs represent full-service brokerage accounts where the investor is entitled to a scaled number of trades for a fee, based on portfolio size. The fees are calculated as an asset class-based fee or a single blended fee. Examples include RBC Dominion Securities Advisor Program and BMO Nesbitt Burns Meridian.
Over time, the non-discretionary fee-based program category has grown to include fee-based programs offered by firms in the financial advisor/financial planner channel, as well as the branch advice channel. The shelves of these two types of programs are generally limited to F-series mutual funds and deposits or other products available to Mutual Fund Dealers Association (MFDA) members.