John Baxter, Director at True Financial Planning, has warned financial advisers that if they do not consider switching to charging fees rather than taking commissions they risk losing clients.
Our view
Our director, Ashley Clark, shared the podium as a key speaker at a recent industry exhibition with John and confirms that same point.
Ashley said "Since the day started trading, we have always offered a fee based option, and more and more people are waking up to the idea that fee based advice is better for them".
One recent case highlights the difference - a client approached me for some advice on a pension. Rather than commissions, he opted for us to work on a fee basis - the £200pm that he is paying has a projected maturity value of £15,000 more than the commission based quotation."
He added: "For the fee based cost of just £400 he is looking at a significantly improved pension".
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