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.
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.
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