________ planners charge a fee that is reduced by the amount of the commissions they earn.
A)Fee-only
B)Fee-and-commission
C)Fee-offset
D)Commission-based

Question

Quizplus · Accepted Answer

Fee-offset planners charge a fee but reduce it by the amount of commissions they earn. This can create a potential conflict of interest as the planner may be incentivized to recommend products that offer higher commissions instead of what is best for the client. Fee-only planners (A) do not earn commissions and are typically considered to have fewer conflicts of interest. Fee-and-commission planners (B) charge a fee and earn commissions, potentially creating conflicts of interest. Commission-based planners (D) earn only commissions and are generally not considered to be acting in a fiduciary capacity.

________ Planners Charge a Fee That Is Reduced by the Amount