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Linton

aroominyork said:

dunstonh said:

They also charge a % comission or a fixed fee.

It is not commission. It is a fee.  As mentioned higher up, commission was banned at the end of 2012.

What difference does it make in practice? You give the man/woman 3% of your money either way.

There is no incentive on the IFA to choose investments for any other reason than what is appropriate for you.

dunstonh

aroominyork said:

dunstonh said:

They also charge a % comission or a fixed fee.

It is not commission. It is a fee.  As mentioned higher up, commission was banned at the end of 2012.

What difference does it make in practice? You give the man/woman 3% of your money either way.

On many products, commission did not match the charges.    Commission was paid by the provider. The provider had charges that did not necessarily match the commission.

Providers would often run with enhanced commission deals at no extra cost to the customer if they wanted to improve market share.     Or they would collect initial commission over a period of years rather than initially.    Often the adviser commission would be covered within 4-5 years but the provider would continue with the higher ongoing charge keeping the difference for themselves.