The Case for Commission

clock

The Retail Distribution Review's suggestions regarding ‘Customer Agreed Remuneration' (CAR), has sparked intense debate around new client charging models, and that old chestnut of fees versus commission.

Fees are often championed as the professional end of the market, and by inference best industry practice, and commissions are viewed as downmarket and grubby and the domain of pushy salesmen. At the most simplistic level, this is based on the perceived wisdom that fees are charged by professionals such as solicitors and accountants, and commission is inherent in the murky worlds of real estate, double glazing and the like, where there is a degree of arm twisting and high pressure tactics to secure a deal. Many so-called industry experts and media champions also fuel it, and for some rea...

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

Asset management M&A activity fails to deliver 'meaningful profitability improvements'

Asset management M&A activity fails to deliver 'meaningful profitability improvements'

M&A strategy not necessarily a winner

clock 06 May 2025 • 1 min read
Scottish tech firm takes control of Marlborough's IFA platform to drive 'next-gen wealth infrastructure'

Scottish tech firm takes control of Marlborough's IFA platform to drive 'next-gen wealth infrastructure'

The Marlborough Select Platform caters to advisers and their clients

Sahar Nazir
clock 06 May 2025 • 1 min read
Origo rolls out whole-of-market ULoA to 'streamline' advisers' LoA requests

Origo rolls out whole-of-market ULoA to 'streamline' advisers' LoA requests

Developed following industry feedback

Isabel Baxter
clock 06 May 2025 • 2 min read