IFA Promotion, the organisation that promotes independent financial advice to the public recently released findings on the number of people opting for fees or commission.
According to information collated from their telephone lines and web site, people preferring to pay a fee for advice were double those opting for advisers to be paid by commissions. Over 85% of respondents opted for either fee or commission, as shown above. The rest wanted to leave their options open and select the best route for them at the time.
Our View
When you take financial advice or buy financial products, it is always worth asking what the fee or commission would amount to. Be very wary if the fee and commission are the same amount!
We believe it is generally in your best interests to opt for fee based advice and products. This way you know what you will have to pay for the work. If commission is generated from products you buy, some or all of that commission could be used to cover your fee, with any balance reinvested into the policy to reduce the charges.
Whilst reinvestment of commission is not always possible, you have a right to know what you will have to pay and how much work is involved.
If your are not sure you are getting a good deal, contact us and we will give you our opinion of the charges being made.
Registered Users: Download our free factsheet, Financial Advice - Shopping Around For The Right Deal for hints and tips.