There are many inherent problems with paying for advice by commission. Here are just a few -

• The adviser MUST SELL something to get paid.
• Question of impartiality. If one solution pays £2,000 in commission and the other only £500, how will you know if the adviser is acting in your best interest or his own?
• Commission is usually paid up front for arranging a product. There is no incentive for service.
• An increasing number of solutions in financial planning do not pay commission.
• Cross Subsidisation. People who bought commission paying products are subsidising people whose solutions did not involve buying policies.
• Commission often allows a reactive advice service only as opposed to a proactive financial planning.

To see if we can help, please e-mail us at enquiries@ifa-lothians.com.

O’Sullivan Associates - Laverockhill, 36 Dunbar Road, Haddington, East Lothian EH41 3PJ.
Telephone 0131-665 7533 Email enquiries@ifa-lothians.com
Michael O’Sullivan, Cert PFS

Warning: The guidance and or advice contained within this website is subject to the UK regulatory regime and is therefore primarily restricted to consumers based in the UK.