Recently, I have been asked about the fee-based model and whether is it viable. In the past, few advisers asked me this question because it is more lucrative to sell products. Although MAS did not say commission will be removed, it appears that the industry thinks this is the direction. So many firms and advisers have started to prepare themselves for the change. I was asked again and again whether is fee-based viable and exactly how much should advisers be charging? There are many ways to calculate how much the advisers should be charging. My blog readers would have read it from my past articles. The fee is dependent on a combination of the adviser’s expertise, experience and business cost. Today, I’ll give another perspective to how much an adviser should be charging based on a comparative approach.

Under comparative approach, advisers should compare themselves with other similar occupations. By ...