Just wondering what financial advisers think of this. . .
I know that PIBA are pushing the idea that Brokers start charging an initial fee (lets say €100) for several reasons. Obviously there are pro's and con's to it, but I am still trying to decide how my company should progress. As of now we do not charge any fees (outside of comissions received from Assurance/Mortgage Companies).
Many clients have asked me how much they owe me, after I have done all the work but lets say they are declined a mortgage or life cover policy. To some professions this may seem crazy, but this is the reality of life for financial advisers.
There is a double edged sword to this. On one hand I have done the work and advised the client so it makes sense (like most advisory professions) to charge an up front charge and ongoing financial advice charge. Also it can give clients a feeling of quality service (instead of saying, we receive payment from the insurance companies) as opposed to "free advice" that it might feel like. One would hope following on from this financial advisers would eventually be a respected valued profession on a par with other financial services.
On the flipside it can be difficult enough to enhance brokers public perception without charging them more (particularly in the current economic climate. While I feel it would add more weight to Financial Advisors importance in the financial services sector, it may also give Larger companies (Assurance/Mortgage) the opportunity to exploit this by saying to people that they can save money coming direct to them. (at the moment SAVING MONEY is the most important thing in the general publics mind).
I know that PIBA are pushing the idea that Brokers start charging an initial fee (lets say €100) for several reasons. Obviously there are pro's and con's to it, but I am still trying to decide how my company should progress. As of now we do not charge any fees (outside of comissions received from Assurance/Mortgage Companies).
Many clients have asked me how much they owe me, after I have done all the work but lets say they are declined a mortgage or life cover policy. To some professions this may seem crazy, but this is the reality of life for financial advisers.
There is a double edged sword to this. On one hand I have done the work and advised the client so it makes sense (like most advisory professions) to charge an up front charge and ongoing financial advice charge. Also it can give clients a feeling of quality service (instead of saying, we receive payment from the insurance companies) as opposed to "free advice" that it might feel like. One would hope following on from this financial advisers would eventually be a respected valued profession on a par with other financial services.
On the flipside it can be difficult enough to enhance brokers public perception without charging them more (particularly in the current economic climate. While I feel it would add more weight to Financial Advisors importance in the financial services sector, it may also give Larger companies (Assurance/Mortgage) the opportunity to exploit this by saying to people that they can save money coming direct to them. (at the moment SAVING MONEY is the most important thing in the general publics mind).