Opinion  

IFA: Clients don’t understand percentage fees

I pose this as a question, not a criticism.

If a client is investing £100,000 and the adviser charge is 2 per cent, is it this modest percentage because that is somehow more acceptable to the client than describing it as £2,000?

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And are you really an independent financial adviser? Will you still charge that £2,000 even if the advice is not to buy a product? Or are you charging as a percentage only if the client buys a product because really you - not the client - would like it to still be commission?

For those of a delicate nature, like the other secret IFA, let me repeat I am only asking questions. I’m not having a go, honest.