FEE BASED ADVICE LEAFLET

Why should you use an independent fee based financial adviser?

The advice provided by an independent fee based financial adviser is not just independent of the various product providers (insurance companies) in the market place, but it is also independent of commission paying products.

The most time-consuming part of the Advice Process is the act of giving advice, which involves factfinding, the preparation of suitable financial planning proposals and the provision of product recommendations. This is where we earn the majority of our fees, and being paid for this element of the advice process means that our advice can be completely impartial, totally independent of commission paying products and 100% in your best interests.

By comparison, a commission based adviser must persuade you to move on to the next stage of the process, implementation, to get paid anything at all. In this respect, there will always be doubt about whether their advice is truly 100% in your best interest, or whether they are putting their own interests ahead of yours, such as earning product commissions.

ADVICE PROCESS	COMMISSION BASED ADVICE	FEE BASED ADVICE
Advice Factfinding Financial planning proposals Product recommendation(s)	Nothing paid here	Majority of fees earned here
Implementation Company recommendation(s) Arrangement of transaction(s)	Majority of commissions paid here	Minority of fees earned here
Servicing Annual reviews Ongoing administration etc	Minority of commissions paid here	Minority of fees earned here

Is there any evidence to show that fee based advice is better than commission based advice? We cannot speak for other firms, but we can tell you that:

our staff are fully salaried, and DO NOT receive commission-based bonus payments
we often recommend National Savings and other non-commission paying products

For details of our Financial Planning Service click here.

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