Fee-Based Consultation

The term "fee-based consultation" refers to a form of consultation and compensation which is common in wealth consultation and wealth management circles.

As the term implies, in this type of consultation customers pay the consultant a fee for services provided. Fee-based consultants do not accept commissions, finder’s fees and retrocession fees from service providers. The primary advantage of fee-based consultation is that it prevents potential conflicts of interest.

In the strictest and most basic form of fee-based consultation, fees are based entirely on the amount of time which the consultant dedicates to a customer.

Today however, many financial service providers liberally define all business models which exclude third-party commissions as “fee-based consultation”.

Some “fee-based consultants” incorrectly charge recurring wealth management fees as a lump sum or a percentage, regardless of the actual time and effort involved.

More on this topic:
Private banking in Switzerland

About moneyland.ch

moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 100 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.