IMPARTIALITY IN PROFESSIONAL PRACTICE

In the delivery of financial services the advisor impartiality with regard to product solutions is the fundamental principle behind a fee for service basis of compensation.

Since the financial services industry compensates financial advisors only upon the sale of a financial product the consumer must be made aware that there are 2 compensation choices available in any client/advisor engagement.

• A client paid fee based upon a financial plan solution analysis with no specific product (brand) recommendations.
• A product solution based upon a financial plan analysis with specific product recommendations. The advisor compensation in this instance is paid for by the financial institution whose product is chosen by the client.

With the full disclosure of the choices availabe the advisor can deliver the impartiality that is the hallmark of professional practice.