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Article: Advice the American way; For some clients, commissions are the best choice, for others, fees are the favoured option. In the US, where there has been a move towards fee-based advice for the past 10 years, the debate and evolution goes on.
- Article from:
- Investment Adviser
- Article date:
- August 26, 2002
CopyrightCOPYRIGHT 2002 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Bob Barry
The FSAs proposals to push independent financial advisers into a "defined payment," or fee-based system, is no doubt unsettling for advisers who have earned commission on products they sell.
What impact would Consultation Paper 121 have on profitability? Would the public be willing to pay fees? What impact would it have on the relationship between advisers and their clients, and between advisers and their product intermediaries? How would it affect the quality of advice? In short, can IFAs survive under this system?
A look at the US experience, where many financial planners have voluntarily shifted to a fee-based model in the past ...