By Jason McIntyre
Financial advisors are bracing for change, expecting commission-based remuneration to increasingly give way to fee-based compensation.
And they expect this change to accelerate with the implementation of the Client Relationship Model reforms in Canada, themselves part of a global shift to fee-based investing.
In a recent Vanguard sponsored survey, 69 per cent of advisors said they were compensated by commission alone, whereas 21 per cent said they were fee-based only. However, these same advisors believe that their compensation structure is going to change over the next five to 10 years, with a shift away from commissions to fee-based.
We agree that the advice industry is changing and believe these changes are generally in the best interest of both clients and advisors.