Most Advisers Reject Fees for Risk Advice

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Is it a realistic expectation that a risk-focussed advice practice should be able to develop a sustainable business model based on a combination of advice fees and commissions?

  • No (63%)
  • Yes (31%)
  • Not sure (6%)

More than six in ten advisers (62 percent) believe that a combination of fees and commission for risk advice will not deliver a sustainable business model, according to our latest poll.

32 percent agreed with our question while another six percent were not sure.

This poll followed our article on Elixir Consulting’s new report which found that more advisers are building fees into their risk-only advice proposition (see: Fees for Risk Advice an Emerging Reality).

Both that story and our poll last week elicited a big response from Riskinfo commentators and led to sometimes vigorous debate.

Supporting the opinion of the majority, one commentator pointed to a recent report, out of New Zealand, on risk commissions: “If you have not already read the interesting comments in relation to the removal of risk commissions in New Zealand do it now!

“It’s not going to work is the resounding message that they see from what appears to be a far more involved assessment of clients and the effect on under insurance and the effect the removal of this form of remuneration will have on society and the country.”

(See: Risks in Moving Away from Commission System.)

Our poll remains open for another week and we are interested to hear your views…