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

Andrew Tully: Immediate priorities for advisers following 'mixed picture' Budget

Andrew Tully: Immediate priorities for advisers following 'mixed picture' Budget

'Taken together, the Budget measures reinforce the importance of financial planning'

Andrew Tully
clock 29 October 2026 • 4 min read
Budget 26: Initial relief from advisers turns to 'irritation at the detail'

Budget 26: Initial relief from advisers turns to 'irritation at the detail'

Tax rises ‘aimed at thrift and capital’

Sophia Panayi
clock 29 October 2026 • 4 min read
Budget 26: Savings income tax rate to rise to 44% for higher earners

Budget 26: Savings income tax rate to rise to 44% for higher earners

From April 2027

clock 29 October 2026 • 2 min read