For many years there has been a debate between commission and fees. Surely the onus is on the adviser making it clear to clients they have the option to take advice on a commission basis or pay a fee.
The commission basis is very transparent, highlighted in a key features document and is a finite amount.
Work on a fee basis can be assessed from the outset but can sometimes overrun and add to the overall cost.
The crux of the matter, surely, is the client's ability either to pay a fee or take the commission route.
No two clients' circumstances are the same. The young first-time buyer would perhaps be slightly reticent to pay a fee for the advice as opposed to the higher-net-worth client who can afford to pay an hourly fee and is comfortable with this arrangement.
I feel that all the elitism portrayed between fee-based advice being unbiased but commission advice being slightly tainted is without foundation.
It is about time that we all appreciate that each other's practice will have a different approach to our clients' needs and requirements.
Most IFAs are well established and have good quality client banks which come from personal referrals from clients, solicitors and accountants, etc. I do not feel these people would have been referred if the IFA was “commission-hungry” or unprofessional.
Let the Daily Mail continue to confuse and mislead the public with under-researched and ultimately damaging “advice”. We as an industry should stop the bickering and get on with the job involved and each to his own.
Financial services manager, Tony Tyler Financial Services, Salisbury