Range of payouts. When commissions are paid. Consider fiduciary duties. The adviser's fiduciary responsibilities to the client should be considered in deciding whether to buy individual securities. Unless the adviser is skilled at researching and analyzing individual securities, the authors generally do not recommend that an adviser manage portfolios of individual securities.
Sales are common.
An adviser can receive commissions for selling insurance products only if he has an insurance license issued by the state in which he is domiciled and any other states in which he solicits business. Load policies generate commissions, but the commission rates and systems vary widely within the insurance industry. The material in this article was adapted from PPC's How to Transition Your Practice to Financial Advisory Services . Practitioners Publishing Company. All rights reserved.