I have been reflecting on my letter in your November 30 edition and Nic Cicutti’s thought-provoking piece in your December 7 edition.
It strikes me that there is plenty of scope for financial advisers to receive payments that are disproportionate to the amount of work they do for their clients by way of fund-based renewal commission as well as initial commission.
Perhaps the mantra should be: “Relate the work you do to what you are paid and vice versa.”
For instance, when investments are initially made, that usually means rebating commission so that what you receive matches the amount of work you have done.
Later on, when funds (and renewals) accumulate, that usually means moving to six-monthly review meetings instead of annual ones to improve your service in line with higher renewals or, at the very least, to treat the client to a very nice lunch or a weekend break.
Towers of Taunton (Financial Services),