Fees

Question 1

Hourly Fees - bens

Answer 1

• easy to understand/known cost
• familiar/same as other professions
• based on actual work done
• fee cap can be agreed

Question 2

Hourly fees - drawbacks

Answer 2

• adviser could run up the clock
• clients may avoid contact due to extra cost
• paid from own funds
• can be high costs for small investments

Question 3

Fund based fees - bens

Answer 3

• may be able to negotiate lower fees
• not paid from personal funds
• incentive for adviser to grow funds
• lower fees for lower investment amounts

Question 4

Fund based - drawbacks

Answer 4

• difficult to predict costs each year
• cost may be high in relation to work done by the adviser
• may be extra charges for other services
• reduces potential investment growth