Glossary
Fee-Based Advice
Fee-Based Advice is an advice model in which the service is remunerated directly by an agreed fee rather than through commissions or retrocessions from product providers. The fee is therefore transparent and independent of the choice of individual financial products.
At a glance
01
The fee is agreed on a time-spent basis, as a flat rate, or as a percentage of assets.
02
The model avoids conflicts of interest arising from product-dependent commissions.
03
Fee-Based Advice must be distinguished from Discretionary Asset Management, which requires a licence.
Frequently asked questions
With Fee-Based Advice, the client pays directly for the service. With commission-based advice, the provider is funded by payments from product manufacturers, which can encourage conflicts of interest.
Part of the topic
FinanzberatungSources: FINMA