A top investment executive says advisors shifting to a fee-based model better justify the dough their clients are spending.
In an exclusive interview, Andrew Marsh, president & chief executive officer of Richardson GMP Limited, told WP that fee-based portfolios are not always the best option for investors. He says clients need to understand what they’re paying for, be it a wealth plan, investment policy statement or risk management process.
“From a business perspective, I like fees,” said Marsh. “…But it isn’t right for everybody and it leads to an advisor who builds a nice little lifestyle based on fees, but they forget that it’s someone else’s money.”
Marsh described some fee-based advisors as lacking work ethic and dedication to clients, which lowers the standards and professionalism of the industry in some cases.
“I’ve seen a lot of advisors convert to a fee-based practice and then take summers off,” says Marsh. “I think that the work ethic that comes from being a more respectful professional means that people should serve their clients in the way that they expect.” (continued.)