When it comes to compensation, the global financial services industry is veering off in several directions.
Some countries have banned commissions. Others don’t allow charging based on AUM. So we asked our Twitter followers, how do you charge clients?
75% of poll responders chose a percentage of AUM, while 19% said they charged a flat fee.
6% chose other, with Richard Ellis of Ellis Davies commenting, “Both. They are not mutually exclusive. Fixed for initial financial planning and [percentage] if any product implementation then [an] option of fixed or ongoing [percentage] depending on [the] client. A growing number of clients [based] on an ongoing fee.”
How a financial services professional charges clients can very likely impact how they run their business. As different methods of charging are banned – either legally or as the professional norm – how will financial services businesses adjust accordingly? Now is the time to get ahead of the question – or have you already?
