A Fee-Only financial advisor is compensated solely by the client with neither the advisor nor any related party receiving compensation that is contingent on the purchase or sale of a financial product. Neither Members nor Affiliates may receive commissions, rebates, awards, finder’s fees, bonuses or other forms of compensation from others as a result of a client’s implementation of the individual’s planning recommendations. “Fee-offset” arrangements, 12b-1 fees, insurance rebates or renewals and wrap fee arrangements that are transaction based are examples of compensation arrangements that do not meet the definition of Fee-Only practice.
This video features NAPFA National Chair Susan John discussing the importance of Fee-Only compensation. She explains the ways in which Fee-Only advisors charge their fees and the advantage of such a compensation model.