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The Debate about Commission: Choosing a Financial Adviser
It can be difficult to find a suitable financial adviser, especailly one that you trust. Whichever form of financial advice you choose, there will always be a cost for your adviser’s service. You’ll pay for this advice in two main ways:
Most investment advisers work on a commission basis. So their advice is based around you buying products in order that they get paid. Everyone can choose to pay their Independent Financial Adviser (IFA) by a fee rather than commission, if they want to.
The argument against commission is that it encourages the sale of financial products rather than the provision of sensible, balanced financial advice. And For a commission-based adviser, the temptation to recommend the products that pay the highest commission may also be there. With fee-based advice you pay for a service, so the advice you receive is therefore truly independent and easy to compare. At Holland Hahn & Wills we work solely by fee and believe that fees are a crucial part of the drive to ensure professional and impartial advice. For further information please see How we work or www.fsa.gov.uk
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