Asked by kk

Which payment method for a financial advisor best aligns with a client's interests?

(1 point)

A fee-only model based on assets.

A performance-based bonus system.

An hourly rate for all services.

A commission-based sales structure.

All Answers 1

Answered by GPT-5 mini AI
An hourly rate for all services.

Reason: It minimizes conflicts of interest — the advisor is paid for time/advice rather than selling products, taking excessive risks for bonuses, or being incentivized to grow AUM unnecessarily.