Are Non-fee paying family members clients?
How would trades be allocated in such cases?Equally or first to fee paying?
It depends on whether you have a beneficial interest in their account: do they live with you? If so, they’re not clients; they’re you. If not, they’re clients. Treat them as you would any other (non-fee-paying) client.
What if manager has to allocate oversubscribed issue. Do non fee paying clients have same prioirty as fee paying clients or are fee paying clients higher on priority?
That depends on the terms of the advisor/client agreement. If they’re paying fees to have access to hot issues, then they have priority; if not, then they don’t.
If no such thing is specified, then do we assume that the fee paying clients are paying fees for this or do we assume that fees are paid for other advisory services?