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

Nici Audhlam-Gardiner: Wider basic advice adoption could shrink advice gap

Nici Audhlam-Gardiner: Wider basic advice adoption could shrink advice gap

'There is no need to reinvent the wheel here'

Nici Audhlam-Gardiner
clock 04 December 2025 • 4 min read
Demand for IHT advice surges as advisers turn to business relief

Demand for IHT advice surges as advisers turn to business relief

Advisers becoming ‘more proactive’ in IHT discussions

Isabel Baxter
clock 03 December 2025 • 2 min read
Advisers urged to scrutinise governance when selecting investment partners

Advisers urged to scrutinise governance when selecting investment partners

Governance conversations ‘foundational’ to delivery of ‘strong’ investment outcomes

Sahar Nazir
clock 03 December 2025 • 2 min read