The mutual fund industry is quickly abandoning its commission-based sales structure-and bankers would be wise to take note, said a top executive at Charles Schwab & Co.

"Bankers need to embrace the fee-based advice model. If you don't, you're going to be uncompetitive in the new world," said John P. McGonigle, a Schwab senior vice president and founder of its widely emulated OneSource and Mutual Fund Marketplace.

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