Conflicts of interest
The integrity of the adviser is of central importance. The customer is entitled to expect objective advice. Therefore, deposits should not be filled with the adviser’s own products and the adviser must not allow himself to be led by fees or commissions. Only the customer’s interests count.
Therefore, it is not defensible for the deposit to be frequently moved around for no identifiable reason, rather with the aim of driving up fees. In other words, the goal of successful investment for the customer must be placed over and above the employer’s profit goals and the adviser’s own wish for as high a bonus as possible.
Adviser or salesman
The independent adviser basically offers a greater guarantee of independence. However, as soon as he becomes a salesman there is then a risk of uncontrolled dependence. The salesman’s salary usually originates from the product manufacturer or the financial institution through which the asset manager places his stock market orders – and the amount of compensation is dependent on the sales generated.
Tip:
Find out precise information on the dependencies of the adviser:
- How is the adviser’s salary made up?
- From whom does he receive commissions etc.?
- Is he a salesman or an adviser?
- How does he guarantee his independence?
Link: www.retrozession.ch (u.c.)
