How do financial advisers get paid?
How an adviser is paid depends on the type of advice. Pension and investment advice works differently from some mortgage and insurance advice.
Direct advice fees
For pension and investment advice, advisers commonly charge fixed fees, hourly rates, percentage fees or combinations. MoneyHelper states that advisers cannot receive commission for pension or investment advice.
When can commission apply?
MoneyHelper explains that advisers or brokers can receive commission from providers for certain products such as mortgages and insurance. The adviser should explain how the advice is paid for before you commit.
Fees can sometimes be paid through a product
In some arrangements the advice fee can be deducted from or added to the financial product rather than paid separately. That does not make the advice free, so understand the overall cost.