View more on these topics

Survey shows 97% of clients opting for commission over fees

By Helen Pow

Almost all clients would prefer paying commission than fees for independent financial advice according to O&M Financial Services.

The company offered 1,000 new clients the choice of commission or fees for advice on their pension and 97 per cent picked commission.

Of the 3 per cent who preferred fee-based payment, half changed their minds when asked to pay a fee as a deposit.

O&M Systems director Graham Miller says fees are a great idea until you ask people to write a cheque.

He says: “You only have to see how many people queue around the block when a new NHS dentist opens to understand how adverse the British public are to paying fees.

“If the FSA tells the IFA community to take the word ‘independent’ out of their title or go out of business on a fee-only model, most IFAs would change to the new name.”

He says higher-net-worth clients are more likely to choose fees because they understand how much commission will be made from their case.

Recommended

Pru introduces trust trio

Prudential is setting up three discretionary trusts in response to the increasing number of people being caught in the inheritance tax net. The products are an inheritance bond, a gift trust and a loan trust.

Adviser Fund Index

The rebalancing of the Aggressive Adviser Fund Index, which took place on November 1, provided a chance for the 18 AFI panellists to take some risk out of the benchmark. They reduced their exposure to Asia Pacific equities, choosing instead to invest in more defensive American stocks, and increased their weightings in cash, property and […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment