They can be compensated in one of three ways:
The first is on a fee-only basis. The fee is based on the value of the client’s assets and/or income, or is an hourly rate. We work on a fee-for-service basis charging an hourly fee for the amount of time spent.
The second is on a fee and commission basis. The fee is determined by the amount of work involved in designing the client’s plan and continuous updating. The commissions are derived from the sale of financial products if the client implements the product portion of the plan through the planner.
The third is on a commission-only basis. The commissions are usually derived from the sale of financial products by the planner.