News Article : Letter to the Editor
|Category:|| Advisers & Brokers : Commission & Fees|
|Author:||Edited by ITInews|
|Posted:||12 Jul 2006|
Banging your head against a wall burns 150 calories an hour
It is still abundantly clear that all and sundry are harping on the point of the intermediary's commission.
No thought is spared (or is it preferable not to?) for the cost of meeting the requirements of legislation, the processes that have to be maintained, the reams of paper that must be completed and stored, etc.
Long have the consultation fees for doctors been the brunt for public disgruntledness, but if a doctor had to spend the time and effort the intermediary has to, they would also be charging a few thousand rand per visit.
How I would like to only have to spend 15 minutes or less for every client that visits me, rather than the time booked for preparation, drawing information and just asking the client what he thinks is wrong; rather than keeping meticulous record of my analysis, advice etc. through the client advice record, then having to call him every two days until he signs his will (remember Absa v Durr?) etc.
Oh yes, and once the doctor has received his fee, there is no claw-back. But no, the reality is ignored, even when the intermediary bodies get an actuary to explain it. And don't forget - the insurance companies set the penalties, not the intermediaries
No sir, it has become fashionable to knock commission. The powers that be are blind to the long term effect - less people will eventually be serviced, less knowledge will be available, and an industry will have suffered.
From Treasury down to the Bruce Camerons who like only the sensationalist part, through to the FSB who regard themselves as a law unto themselves, it is only the intermediary who is the culprit. Not once have I seen them give the long term prediction based on the structure they want - perhaps because they have little understanding of the realities?
Is that why they are not in a private practice? And when the damage is done, whose fault will it then be?
Regarding the short term broker - just how many short term brokerages had their start as part of a long term practice? Through cross-subsidization did it manage to get onto its own feet!