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&#39Professionals prefer impartial fee-based advice&#39

Professionals have condemned commission-based advice in a survey carried out by True Financial Planning.

The IFA questioned professionals listed in International Who&#39s Who and found that 94 per cent do not believe that a commission-based adviser&#39s advice would be impartial.

Seventy-nine per cent said they would prefer a financial planning service to a financial advice service while 97 per cent were prepared to pay fees for the service if they believed it to be impartial.

True has set up a franchise operation to help IFAs manage the transition from commission to fee-based financial planning.

Co-founder John Baxter says: “The message is clear to the entire IFA community. The professionals in society are disenfranchised by the commission-based advice offering. Something has to change. Either IFAs evolve their service to fee-based financial planning or the calibre of clients they service will fall.

“Most clients I speak to grasp far quicker than most IFAs that to protect the integrity of a financial planning service, it must be fee-based.”

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