Modern professionals PREFER paying fees for financial planning rather than relying on commission bas...
Modern professionals PREFER paying fees for financial planning rather than relying on commission based advice, TRUE Financial Planning says.
According to a recent survey conducted by TRUEfp among members of the International Who's Who of Professionals, 94% said they did not believe a commission based adviser's advice would be impartial.
Seventy-nine per cent also said they would prefer a financial planning service to a financial advice service.
And almost all of the questioned - 97% - added that they would be willing to pay fees for advice if they believed it was impartial.
Although the firm believes this gives a "clear indication" that modern professional prefer fees to commission, it must be pointed out that only 70 "Who's Who Professionals" actually responded to the survey.
Despite the lightweight of the result, TRUEfp's director John Baxter says that something has to change.
"Either IFAs evolve their service to fee-based financial planning or the calibre of the clients they service will fall, along with their profitability."
He adds: "Most clients that our financial planners speak to grasp far quicker than most IFAs that the only way to protect the integrity of the financial planning service is to ensure it is fee-based.
Do you have any comments about this story that you would like to share with fellow IFAs? Click thru the right-hand link and email the editor with your thoughts.
Speaking at Professional Adviser's conference
Equity release panel
Speaking at PA360
TISA's Peter Smith
Shone a light on 'closet trackers'