Are Commission Driven Financial Planners Independent?
Personally, I think that if one calls himself or herself a financial planner, one has a duty to provide a service that is in the best interest of the client. This includes exercising INDEPENDENCE from the part of the financial planner.
However, if you think about it, how do you exercise independence if you’re providing financial advice while at the same time attached to a particular organisation?
For example, a unit trust consultant who’s working for a single unit trust company and at the same time giving out advice to his/her clients. Do you think he or she will recommend products other than the ones that’ll yield commission payments?
That’s why I’m a bit wary when any non-independent financial planners try to give out any advice to me. I need to exercise an extra degree of caution, so to speak.
Anyway, what do you guys think? Share your thoughts below.
By the way, I’m at the moment a proponent of a fee-for-service financial planners. In other words, you’re getting a non-commission driven advice.
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