TCF Mantra

To: john.lappin@centaur.co.uk
Sent: Friday, December 08, 2006 1:13 PM
Subject: TCF Mantra

Hi John,

I have been reflecting upon my letter in your 30 November edition - "Value does not depend upon how we are paid", and Nic Cicutti's thought provoking piece in your 7 December edition - "Boggy trail".

It strikes me there is plenty of scope for financial advisers to receive payments that are disproportionate to the amount of work they do for their clients, by way of fund based renewal commissions as well as initial commissions.

Perhaps the mantra should be:

"relate the work you do to what you are paid and vice versa".

For instance, at the beginning when investments are initially made, that usually means rebating commissions so that what you receive matches the amount of work you have done.

Later on, when funds (& renewals) accumulate, that usually means moving to 6 monthly review meetings instead of annual ones (i.e. improve your service in line with higher renewals), or at the very least treat the client to a very nice lunch or a weekend break.

Kind regards,
Robin