Financial adviser charged fixed fee

Mr. Tan,

I suggest that you add this advice in your book:

Do not use Financial Advisers charging on a fixed percent of the total managed fund with no conditions attached. This scheme is supposed to motivate the Financial Adviser to grow the fund to the benefit of both the client and customer. The contrary could turn out with Financial Adviser collecting the fee regardless of the outcome of the fund performance (which is also a conflict of interest) and customer suffering a double whammy – i.e. losses on the fund + paying a fee above all the other basic charges...