There is currently no prescribed model for fee-based financial planning in South Africa nor is there a definition of a financial planner. There are, however, many financial planners who refer to themselves as “fee-based” and many advisors who call themselves financial planners. However, when push comes to shove, many of them still sell products as the primary means to earn their income (commission). While there is nothing wrong with earning commission, it often results in increased conflicts of interests, because the only way that the person advising you is going to get paid, is by selling you something as part of the process – whether it’s actually right for you or not.

No sale = no income!