Quora Answer: How Do I Tell Whether a Financial Advisor is Optimising His Commissions or My Benefit?

The following is my answer to a Quora question: “How do I tell whether a financial advisor is optimising his commissions or my benefit?” 

You are assuming that one precludes the other.  Nobody works for free.  Financial consultancy is a business, not a charity.  Regardless of whether it is an insurer, bank or fund house, financial consultants are in the business of making money for themselves.  No one is going to sell you a service for your benefit, with no gain to themselves.  Anyone who believes such a claim is naïve. 

What is important for you is whether the financial advice adequate?  Do the recommendations address your financial needs?  Is the service timely and professional?  If so, then why do you care  whether he is optimising his commission?  No competent financial consultant will recommend a product that is inadequate, or contrary to the client needs.  They are not going to throw away their professional license for a petty sum.  Good financial consultants are not cheap.  If you do not make money, they do not make money.  They are not going to throw away their performance bonus by recommending a financial product that is obviously contrary to the client interest.