Australian Financial Services Licensing (AFSL) Forum

This topic contains 0 replies, has 1 voice, and was last updated by  Lawrence 2 years, 5 months ago.

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    Lawrence

    Does the following example fall under conflicted remuneration or any other issues with payment –

    James works as an advisor for company XYZ (James has his own ABN and is paid as a contractor if that matters at all). James is paid 25% of the advice fees he generates.  He is paid no bonuses or extra commissions for the amount of advice he gives. Its a straight revenue share.

    Is this payment method breaching any laws? Conflicted Remuneration?

    James’s pay is tied to his ability to give advice and “could reasonably be expected to influence the advice given to clients by the representative.” because James needs to give advice in order to get paid. However so would be any 1 man band advisory firm – they have to give advice in order for them / their company to make money….

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