Online reaction to article, headlined, Half of clients don’t want to pay for advice
All this really tells us is that as an industry we have collectively failed to educate the population about financial planning and associated financial advice, which will come as a surprise to nobody. Yes, that means all the associations, trade bodies, regulators, advisers, product providers and the Government but then it is an impossible task.
Anyone who thinks that a job can be done for free is operating in a different universe to most of us. Everything has a price – even charity. The question of how advisers get paid has been addressed in part by the RDR. To my mind, it is an agreed amount with the client and not determined by the product or provider.
However, whether this has to be a fee or commission is a non-issue, provided that it gets away from old commission models that are complete nonsense, which is presumably why the FSA has said, make life “easy” and agree a proper fee. What the regulator rightly points out is whether the fee is properly earned, that is, what does the adviser do for the money?
The commercial reality is how much the fee is then tapered to the right market, as it is in every other walk of life. If you cannot find the right clients out of 60 million people in the UK, something is wrong and if you cannot make your sums add up, you are in the wrong business.