Posted by on Feb 11, 2021 in Business | Comments Off on Points Related To Hawley Advisors

Points Related To Hawley Advisors

Registered investment advisors represent only a small percentage of financial advisors (RIA). Federal and state legislation mandates that a fiduciary standard be kept by RIAs. Many so-called “financial advisors” are considered broker-dealers and are kept on behalf of their customers to a lower level of diligence. Finding out how he or she is paid is one of the easiest ways to judge whether your financial advisor is kept to a fiduciary standard. Click to know about Hawley Advisors

Here are the 3 most common financial industry compensation structures:

Fee-Only Remuneration

This model minimises interest conflicts. For his or her advice and/or ongoing supervision, a Fee-Only financial advisor charges clients directly. No other financial compensation shall be offered by any other institution, directly or indirectly. Fee-Only financial consultants offer just one thing: their expertise. Some consultants charge an hourly rate, and others charge an annual retainer or a flat fee. Depending on the assets they control for you, some charge an annual percentage.

Compensation based on Fees

Fee-Only is often confused with this common method of compensation, but it is quite distinct. Fee-based advisors receive some of their income from consumer payments. They can, however, often obtain compensation in the form of commissions or discounts on financial products which they are allowed to sell. In addition, they are not allowed to tell their customers how their income is accrued in detail. The Fee-Based model generates many possible conflicts of interest because the revenue of the advisor is influenced by the client’s chosen financial items.


Major conflicts of interest are faced by an advisor who is paid exclusively by commissions. When a client purchases (or sells) a financial product, this type of advisor is not charged. For each sale, a commission-based advisor makes money and therefore has a great incentive to promote transactions that might not be in the client’s interest. Indeed, many commission-based advisors are well-trained and well-intentioned. But the possible tension inherent in this is great.