There is a myth perpetuated in financial services that ‘clients will not pay fees'. My experience is very different. Where it is possible to articulate value to a client they will of course pay fees for financial advice. I do concede that commission offsetting is a tax efficient and simple way of paying fees but it is a question of process rather than intent.
Where ‘fees’ are simply a euphemism for ‘the commission I would have earned had I flogged you a product’ then of course clients will not pay fees! The recent research from Aegon Scottish Equitable confirming that clients will not pay fees may simply be based on them asking the wrong questions to the wrong people. It was more pleasing to hear some common sense from Abbey. The IFA sector will have to operate on fees in the future. It is becoming an inevitable outcome. Nobody knows what the outcome of the FSA's retail distribution review will look like. The regulator is asking the financial...
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