The simple answer is you can’t. You wouldn’t expect free advice from your lawyer or accountant would you; so why is it that so many people think that there is such a thing as free financial advice. Perhaps it is because so many advisers promote the fact that they offer a free service whereas in reality they are of course generating income when you agree to buy a product, it’s a nasty word called commission!
Now commission isn’t necessarily a bad thing, when you buy a car you don’t worry that the salesman is being paid a commission and when you sell your property you are probably only too delighted that the real estate agent has earned a commission for making the sale. What seems to irk some people is that they don’t understand how financial services is calculated and of course there are plenty of unscrupulous advisers in the market place who charge ridiculous commissions for arranging the simplest of products.
In the UK commission has been outlawed and replaced by fees to encourage a level playing field when it comes to product selection but here in Europe all advisers should comply with the MIFID Directive (Markets in Financial Instruments Directive) and advise clients prior to completing an investment contract the terms and commissions relevant to that contract. So when you set up your QROPS or purchased your tax wrapper did your adviser confirm to you the fees or commissions involved?
It strikes me that there are two types of adviser in the market place. One that wants to make a quick buck by charging the client the maximum and then walking away from any responsibility for future advice and one that wants to build a long term relationship with its clients knowing that by taking a sensible level of initial fee or commission and an ongoing fee for future advice they are building a mutually beneficial relationship with their client.
The number of times we have seen clients who have paid ridiculous amounts of commission for very poor quality advice and then been left in the lurch because the adviser no longer has any interest in them never ceases to amaze us. Of course all this does is give the industry an even worse reputation particularly when some of the worst culprits are unregulated and unregistered. Not much chance of getting your money back from one of these outfits if anything goes wrong!
If you want proper advice you have to be prepared to pay but quite rightly you need to know what fees and commissions you are paying and be comfortable with the advice you are receiving.
We won’t offer you free advice at Fiduciary Wealth and we are not interested in selling you something and then never having any contact with you again. What we are interested is in building a long term relationship where you feel comfortable that the fees you have paid have been compensated for by quality advice and service. If that’s the type of advice you think you deserve then call Tel: 956796911 or email firstname.lastname@example.org .