Financial advisers are divided over whether remuneration based on book size encourages the right behaviours, according to last week's PA Asks.
The poll found that 29% of industry respondents believe rewarding advisers based on the size of their client book drives the right behaviours. By contrast, 37% said it does not, while 35% remained unsure. The 29% of respondents argued that linking remuneration to assets under management (AUM) can recognise the effort involved in building and maintaining large books, especially with high-net-worth clients. One respondent said: "Discouraging advisers by not remunerating them based on book size is going to lead to slap-dash client outcomes. I manage a large book and understand my clients...
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