Charging Structures Flashcards
1
Q
Benefits of fixed fee
A
simple - easy to understand certainty about payment similar to other professional fees e.g. solicitors, accountants can compare across IFAs Cheaper for larger investment sums
2
Q
Negatives of fixed fee
A
Justifiable? what is included - any extra's to pay Personal payment may be large for small cases put off potential clients
3
Q
Benefits of hourly rate
A
simple - easy to understand similar to other professional fees e.g. solicitors, accountants can compare across IFAs Based on actual work done fee cap?
4
Q
Negatives of hourly rate
A
running up clock - negative appearance Discourage contact with client shorter client meetings - can't go into as much depth Uncertain cost Personal funds paid out
5
Q
Benefits of fund based
A
Smaller for lower investment amount
Payable out of investments / pension
Can negotiate low cost for large pots
Incentive to grow funds
6
Q
Negatives of fund based
A
Not connected to work done
Difficult to predict
May be extra charges for other work
Reduces investment growth potential
