Peter Doherty: The earth isn't flat - the case for contingent fees

‘Commoditised’ v ‘value-added’

clock • 5 min read

Despite what their many critics might say, argues Peter Doherty, contingent fees can deliver the best outcome for clients and indeed, in the context of defined benefit transfers, non-contingent fees are a bad idea

There has of late been plenty of criticism directed towards advisers who charge contingent fees. This criticism is wholly misplaced, I believe - and in fact, for many transactions, it is non-contingent fee structures that are more likely to deliver worse outcomes for customers as a whole.    What is more, it is easy to show that non-contingent fees generate a much higher total fee pool for advisers than contingent fees - and with no additional benefit to customers.   The single most frequent - sometimes only - criticism of contingent charging is this creates an incentive structure whe...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Feel Good Friday: Nine Edge Wealth sponsors young Scottish boxer

Feel Good Friday: Nine Edge Wealth sponsors young Scottish boxer

Sponsors Lara Brown

Professional Adviser
clock 17 July 2026 • 1 min read
Women's Wealth Alliance launches careers guide to attract more women to personal finance profession

Women's Wealth Alliance launches careers guide to attract more women to personal finance profession

Aimed at women at different stages of life and careers

Professional Adviser
clock 16 July 2026 • 3 min read
Women in Financial Advice Awards 2026: Shortlists revealed!

Women in Financial Advice Awards 2026: Shortlists revealed!

All the winners will be announced at a celebratory gala dinner on 4 November

Professional Adviser
clock 15 July 2026 • 10 min read