It's Past Time to End the Hypocrisy!

Absolutely, David Macchia. It's crucial for us to address the inconsistencies in how financial professionals are compensated. Transparent and fair compensation models can help build trust and ensure that clients' best interests are always the priority.

David Macchia A solid piece is one that sparks debate; I love a good debate on Fees vs. Commisions! Like so many things such as politics it's a very polarizing topic , however for someone who's promoted the concept of "fee-based" Wealth Management for the past 27 years, I asked myself how come no one has replied "both or neither" meaning the decision of fee vs .commission should come down to the client's best interest in the situation at hand. Do we put a client smaller client (AUM) in a ongoing fee-based relationship? Is it in Their Best Interest? or is the emerging high net worth investor someone who might be better off in a fee based approach to managing their assets and financial planning, hence knowing upfront the overall cost and expensive the relationship? It's not a one -size fits all .. for all clients. No one should have to defend collecting commissions or fees if fairly and fully disclosed ... if one applies the "Fiduciary Standard of Care" doesn't the debate become moot?

I very much appreciate the academic discussion afforded in this thread. However, how many are involved in the actual shaping of policy and education of legislators and regulators? The bottom line is it's one thing to discuss it and it's another to participate in the process. If you're serious about this topic that NAIFA has been on the forefront for decades, then let's talk and get you involved. Without the representation of all sides of the debate, the policies won't be what they need to be in order to ensure American individuals, families, and small businesses have the access to products and services that they need.

I'm in the life and annuity business 25 years, and I've never gotten paid with anything other than a draw or straight commissions, and I'm happy and most importantly, my clients are happy. As far as I'm concerned, it comes down to one thing.... INTEGRITY! If your business is driven by that, and as long as you're acting in the best interest of the client, it won't matter how you get paid.

A professional, that's compensated for financial guidance and direction through the sale of an appropriate product, that satisfies their client objectives can and should hold their head high.