How does an IFA earn money?

dunstonh

oldagetraveller wrote: »

In my experience and to answer the original question, and this will not be popular, by promoting and selling the product that will give them the best commission!

Its not popular and its not factually correct either. For example, IFAs are the biggest introducers to NS&I products despite them being nil commission payers. NS&I even have a website dedicated to IFA use.

If you look at the stats recorded by the FSA (companies have to tell the FSA the information) you will find that commmission taken by IFAs as a community is a lot lower than the maximums. Discounting, fee basis and hybrid fees are increasingly common.

I think you are mixing up sales reps with advisers.