What kind of advisor do you want?

I have been working as a financial advisor for 25 years. I have been an “old type” advisor, charging high commissions to reach my sales targets. Thankfully, for over half of my career I have been a “new type” advisor, working for my clients and getting paid for the work I do. While the industry is moving towards the new advisor model, there are still lots of advisors who prefer the old way. What are a few differences between the two.

Old type advisor

  1. Super business profits
  2. Investment of the month strategy that will change depending on when you talk to them
  3. Differentiate themselves by claiming to able to generate higher investment returns
  4. Varying investment strategies based on which advisor you speak to
  5. Paid by high commissions from the life companies
  6. Work is sales centric
  7. Caveat Emptor
  8. Differing advice based on who you speak to
  9. “Free” financial review that will always find a problem

New type advisor

  1. Reasonable business profits
  2. Consistent investment advice
  3. Differentiate themselves by finding out what you are trying to achieve in life and helping you structure your money so you can achieve it
  4. Centralised investment strategies so you get the same recommendation no matter who you talk to
  5. Paid a fee by their clients
  6. Work is client centric
  7. Advisor works in your best interests
  8. The advice you get in a company is the same regardless of which advisor you speak to
  9. You pay for a financial review. If you are doing well, you may be told “Just keep doing what you are doing”.


Steven Barrett

29 May 2023