Monday, March 02, 2009

The cost of financial advice

Currently there's a big debate on whether financial advisors should be compensated using a fee-for-service model or a commission model. The Sydney Morning Herald chimes in with an article by Simon Hoyle. The conclusion, based on recent research:
...consumers pay 13 times more for commission-based advice than for fee-based advice.
Alan Kohler has argued that commission-based advice gives the planner the wrong incentives. That is, planners will recommend investments based on their commission structure rather than the return they will provide for their clients. (See his article "Too Little, Too Late" on the Business Spectator site). The new research cited by the SMH adds more ammunition to the fee-for-service side of the debate.

Labels: ,

1 Comments:

Blogger sherin said...

I recently came accross your blog and have been reading along. I thought I would leave my first comment. I dont know what to say except that I have enjoyed reading. Nice blog. I will keep visiting this blog very often.


Alessandra

http://www.craigslistpostingonline.info

12:57 am  

Post a Comment

<< Home