Investment advice: define the right commission
Investment advice provides recommendations while you make investment decisions. A single question, an existing portfolio and continuing support require different commissions. A useful quote explains responsibilities, outcomes and all categories of cost.
Define the question and scope
A new strategy, review of existing investments and a second opinion are different needs. Specify the work you want. That is enough initially; holdings and personal risk circumstances are discussed later through a protected process.
Who makes which decisions?
Clarify who recommends, decides and executes orders. A custody platform is not automatically advice. Delegating investment decisions requires a different commission from recommendations you can accept or reject.
| Service | Decision and commission |
|---|---|
| Investment advice | You decide whether to follow a recommendation |
| Wealth management | Decisions delegated within agreed authority |
| Execution only | Orders without personal recommendations |
Personal assessment within the advice process
Before specific recommendations, the professional clarifies the information and assessments needed. Goals, knowledge and finances should not be collected unprotected in a quote request. Ask how advice, documentation and secure exchange are arranged.
Have recommendations explained clearly
Understand how a proposed investment works, its costs, possible losses and access restrictions. Ask about limitations and possible conflicts. Past performance or an example does not establish personal suitability or guarantee future returns.
One-off review or ongoing support?
A one-off review should state what was examined and unresolved points. Ongoing advice needs rules for contact, recommendations and reviews. Do not assume automatic monitoring or immediate messages for every market movement.
Compare all cost layers
Advice, custody, transactions, currency exchange and products may be charged differently. A flat fee does not necessarily cover everything. Clarify minimum charges, included services and third-party remuneration before comparing offers.
| Cost item | Ask about |
|---|---|
| Advice | One-off / ongoing, minimum and extra meetings |
| Custody and orders | Custody, transaction and currency costs |
| Products and remuneration | Internal costs, rebates and conflicts |
Review the commission and professional
Ask about the relevant supervision or registration status and experience. The agreement should explain scope, limitations, responsibilities and termination. Credentials, custody account numbers and complete holdings lists are unnecessary initially.
Frequently asked questions
Can I request a second opinion?
Yes. State that you want a recommendation reviewed. Records are exchanged securely after agreeing the commission.
Must I delegate investment decisions?
No. You decide with advice. Delegation belongs to a separately agreed management mandate.
Is ongoing monitoring always included?
No. Agree its scope, frequency and information provided.
Must I complete a risk profile in the enquiry?
No. The enquiry defines the commission. Personal assessment happens later with the responsible professional.
Are custody and product costs included in the fee?
Not necessarily. Ask for included and additional costs to be listed.
Does registration guarantee returns?
No. Status and investment risk are different questions. Ask for risks and limitations to be explained.
