How are investment advisers paid for their services?
Generally speaking, investment advisers may be compensated for their services in a number of different ways. Compensation methods can include payment based upon a set percentage of the assets managed, a flat hourly fee, a fixed fee; or a combination of these. Before choosing an investment adviser, always request a written copy of the method of payment utilized by the investment adviser. This information is required to be outlined on Part 2 of Form ADV and is commonly referred to as the brochure. Investment advisers are required by law to provide this information to consumers.
