What is an Advance or Reserve?

Advance :

From time to time advisers might ask to be paid ahead of a scheduled pay run. They may also request an additional amount based on a commission/fee payment that has not yet been processed. This is called an Advance.

Reserve :

When an AFSL needs to retain an amount to cover a future licensing related fee, this is called a Reserve.  A reserve can also be used to retain an amount from an adviser/practice to cover a future payment or potential clawback.

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