Imagine, if you will, a Financial Adviser who works for you, not for an institution, an Adviser who is paid to give you the right advice, advice that is truly independent, and to form a relationship with you without hidden conflicts of interest. This is a Fee-Based Financial Adviser.
One of the key differences between a Fee-Based Financial Adviser and a Commission-Based Adviser largely comes down to where their incentives lie. Commission-based Advisers still accept undisclosed, large commissions from the institutions that they represent, while a Fee-Based Financial Adviser will typically charge a fixed sum that is fully disclosed and clearly outlines exactly what will be delivered. There is no hidden agenda or undisclosed commissions so clients can rest assured that their interests are being placed first. A highly-qualified, experienced Fee-Based Financial Adviser will spend the time required to identify the right solutions and strategies for you, not the solution that pays the highest ‘kickbacks’ or commissions.
The two key questions to ask any Financial Adviser that you meet with are:
- How are you paid by working with me?
- How much will you receive from the advice provided?
A typical answer to these questions from a commission-based Adviser will be along the lines of “Don’t worry, you don’t pay us directly for the advice provided” – note that this is not a sign of generosity but rather a warning sign that there are commissions being paid elsewhere, so be sure to ask exactly what they are.
Fee-Based Financial Advice has become a widely accepted and applauded standard in mature financial markets across the globe including in the US, UK and Australia. This transformation to a service model that truly puts client interests first is just beginning in Singapore and the rest of Asia-Pacific, and is quickly spreading as clients quickly recognise the value of honest and transparent advice. We are thrilled to be at the forefront of this transformation and developing long-term, mutually beneficial relationships with our clients.
Always remember, “if you pay peanuts…you get monkeys” – would you trust a lawyer, doctor or accountant to act in your best interests AND complete the work for free..?
Jarrad Brown is an Australian-trained and qualified Fee-Based Financial Adviser with Australian Expatriate Group of Global Financial Consultants providing specialist financial advice and portfolio management services to international and local professionals in Singapore.
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