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Wealth Professional | 03 Sep 2013, 12:00 AM Agree 0
There is a huge gulf between how advisors are paid and how investors think they are paid; indicating that advisors are not putting in enough effort in educating their clients about compensation.
  • Mark Schneider | 10 Sep 2013, 10:31 AM Agree 0
    Consumer knowledge about advisor commissions is sadly lacking because they are told it is. No reasonable consumer thinks advisors do not receive commissions.
    They know they do.
    Very few advisors are getting filthy rich by earning them. Those that do are providing a service much in demand by high net worth Clients. A much different story.
    Proper disclosure of commissions to the consumer and that's where it should end.
    What this really is about is control and profit by those who want to move revenues from the existing system to a new or additional profit center.
    Forsaking the lowest common denominator of investor.
  • Rena Weikle | 08 Apr 2014, 06:04 PM Agree 0
    I agree with Mark. Advisors can not work for free, and transparency is a good thing. However my concern is that the confirmation will state the commission paid by the client, however, the advisor does not receive all of that, and clients may believe that they do. The push toward fee based accounts is a profit center for the firms and not always in the best interest of the clients... which should be weighed very carefully.
  • Kathy Waite | 10 Apr 2014, 12:03 AM Agree 0
    I do believe people should know what they pay so they can judge if its value for money. I am fee for service . However this happened in the UK in 1992. Handled very badly. Tons more paperwork. We had to disclose the impact of fees on returns, most clients were shocked but what choice do they have really? At the time there were not things round like ETFs for ordinary families to use. It just put people off saving. They didn't go look for an alternative. The issue was when they thought I the advisor got all the fees. Led to comments about , now I know what paid for your vacation ( husband doing night shifts actually ...) they don't take into account business overhead or that you don't bill for 8 hours a day. More education needed all round I think.
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