Former LIA president Len Warwick has stormed into the commission debate, accusing some fee-based advisers of exhibiting “snobbery” and “arrogance” by attacking commission.
Warwick, chairman of Warwick Butchart Associates, says many consumers prefer a commission-based payment structure.
He says: “Some of us have been around for long enough to appreciate that to some consumers, and not only the less well-off, commission represents the easiest payment method.”
He says that while many IFAs who work on a fee-only payment structure have created stable practices with a strong base of valuable clients, it is unfair to judge others who charge their clients commission.
He says: “The arrogance of advisers that impartiality is not possible in a commission structure and that fees are beyond reproach is too simplistic. We can behave professionally or unprofessionally, however we are paid.”
Warwick says all advisers want to be paid for what they do and whether it is through commission, an hourly rate, a fixed fee, a percentage of funds under management or a retainer, the charges are fully disclosed to the consumer.