Traditional Commission Model	Fee for Service Model
Advisor is paid to sell a product and gives advice away for free.	Advior is paid for giving advice and gives product away for free.
Advice given to support product recommendations.	Product recommendation supports advice.
No sales = no compensation resulting in potential conflict of interest.	Recommendation is driven purely by client need resulting in no conflict of interest.
Advisor/Client relationship focus on product justification with constraints when altering investment strategy.	Advisor/Client relationship focused on goals and objectives with freedom to alter investment strategy.

 

The duties are the same for both regarding development of an investment strategy, and compliance issues are the same for both as well. That's why I switched to a Fee-for-Service practice and maybe you should consider switching as well.

Why switch to a Fee for Service Platform?

Your win-win solution

As an investor, you need expert consultation on the full range of your financial needs, and Fee for Service accounts have been uniquely designed to meet these needs and provide you, your investment portfolio and your financial plans with the individualized, focused solutions you want.

Consider the benefits of moving to a Fee for Service account.

Not only are you working with an experienced advisor who manages your financial matters with a focus on real issues, but you are also able to negotiate a simple, customized fee for ongoing service that steers you away from transactional investing.  And, using the fund company’s Series F solution, a Fee for Service account is one way to get the total wealth management experience without paying any commissions.

The Series F solution

All Mutual Fund companies offer Series F solutions on their line of professionally managed mutual funds.

The fee for professional management of a mutual fund is called a management expense ratio (MER), and is paid to the mutual fund company.  The MER is calculated by adding the total expenses for a fund and dividing this figure by the total assets as valued at a specific date.  These expenses include the fees paid to the manager, the operating expenses of the fund manager and Fund Company plus the advisor’s commission.

Lower MERs

A unique feature of Fee for Service accounts is that they result in lower MERs due in part to the absence of a commission fee in the calculation.  This allows you to negotiate a comprehensive fee for your entire portfolio or family portfolio

Please view my Fee Schedule for a partial list or call for specific information.

Please email me at the address below with your contact information and I will include you in future correspondence.

If you would like to have access to view your accounts on line please email me at gm@gregormcdonald.com or call me at (905) 646-2210.

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