Fee-Only vs Commission Financial Advice in Ireland: What You're Really Paying

A client came to me last year with a savings plan he'd had for six years.

He thought he was paying nothing for it.

He was paying every single month. The charge was just buried inside the product, where he'd never see it, and the adviser who sold it to him was paid a commission for putting him in it.

He's not unusual. Most people in Ireland have no idea how the person advising them gets paid. And that one fact, more than qualifications or charm, decides whether the advice is built for you or for them.

So here is the whole thing, in plain language. How advisers get paid, what the labels actually mean, and the single question that cuts through all of it.

The one question that matters

Before you take money advice from anyone, ask: what does this person gain if I do what they say?

That is the whole test. Everything below is just detail underneath it.

I'll put myself in the frame first, because I have an agenda too. I run a business. I make money when people coach with me. The difference is in how I get paid, and what I am not allowed to earn. I do not sell products. I do not take commission. I charge for my time, and that is the only way money reaches me. So I have no reason to push you into one pension or fund over another, because I earn the same either way.

That is what fee-only means. Hold that up against the alternatives and the picture gets clear fast.

How do financial advisers get paid in Ireland?

There are three ways, and every adviser uses one of them.

Commission. The product provider pays the adviser when you buy. You often pay nothing visible up front, which is exactly why it feels free. It isn't. The cost sits inside the product as an ongoing charge, frequently a percentage of everything you've invested, taken every year for as long as you hold it. The adviser's income depends on you buying a product, and on which one.

Fee-only. You pay the adviser directly, as a flat fee or for their time. No product provider pays them, and any commission that would otherwise come their way is refunded to you or doesn't exist. Their income does not depend on you buying anything. This is the model I use.

Hybrid. A fee for the plan, commission on what you put in place. A mix of the two above.

All three are legal in Ireland, as long as the arrangement is disclosed to you in writing. Under the Central Bank's Consumer Protection Code, intermediaries now have to publish the commissions they receive on their website. So you are allowed to ask, and they are required to tell you. Most people never ask.

The deeper version of each model is here: How do financial advisers get paid in Ireland?.

What "independent" actually means in Ireland

This is where the labels get slippery, so it's worth knowing the real definitions.

Tied agent. Contractually signed up to sell one provider's products. One life company, one pension provider. They can only offer you what's on that single shelf.

Multi-agency intermediary. Holds agencies with a panel of providers and can recommend across them. This is the most common setup in Ireland, and it's better than tied, but it's not the same as independent.

Independent. Here's the part that changed. In Ireland an adviser is no longer allowed to call themselves "independent" if they accept and keep commission. The word is now reserved for advice based on a fair analysis of the market with no retained commission. So if someone calls themselves independent, that label itself is a signal worth checking.

The reason this matters: a shelf decides your options before any advice is given. If the person can only sell from one provider, or earns more from one product than another, the recommendation was shaped before you walked in.

More on the three labels and what each is allowed to claim: Independent vs tied financial advisers in Ireland.

How much does financial advice cost in Ireland?

It costs something either way. The only question is whether you can see it.

With commission, the cost is hidden inside the product and paid for the life of the product, so a "free" consultation can be the most expensive option you ever choose. With fee-only, the cost is a number you agree up front and can see in full.

Here's a concrete example of why the hidden version stings. Most advice you'll be offered pushes you to consolidate or transfer your pensions, because an adviser typically earns most when you move one. But a good company or occupational scheme often has excellent funds at fees up to twenty times lower than the personal pension you're being moved into. Transfer, and you can quietly multiply your costs for no better investments. That advice only ever comes from someone with no commission riding on the move.

The full breakdown of what advice actually costs is here: How much does financial advice cost in Ireland?.

Are financial advisers worth it in Ireland?

Yes, when the advice is on your side and you understand the plan at the end of it. No, when it's a sales process dressed as advice.

The value of a good adviser isn't a hot fund or a clever product. It's stopping the expensive mistakes: holding a single company's stock out of inertia, leaving a pension in a default fund, missing tax relief you were entitled to, paying a layer of charges you never agreed to. None of that requires a commission to fix.

And the real goal isn't to need an adviser forever. It's to understand your own money well enough that you're the final decision-maker. Because here's what every adviser and every finance influencer has in common, including me: we all have an agenda. Which is why the only person you should fully trust with your money is you. A good adviser gets you there faster. They don't keep you dependent.

How to check an adviser is regulated in Ireland

Two checks, both free, both quick.

First, confirm the adviser or firm is authorised by the Central Bank of Ireland. You can search the Central Bank's register of authorised firms directly. If they're not on it, walk away.

Second, know that authorisation is what gives you recourse. If something goes wrong with a regulated adviser, you can bring a complaint to the Financial Services and Pensions Ombudsman. With an unauthorised one, you can't. The Ombudsman cannot investigate a firm that was never authorised in the first place.

This is general information, not personal advice

Everyone's situation is different. The above is how advice is paid for and regulated in Ireland, and my own approach, not a recommendation for your specific case.

I'm Sjoerd Bak, a qualified financial adviser. I don't sell products and I don't earn commission. I charge for my time, and I help tech professionals in Ireland turn a good salary into real financial freedom.

If you want a second pair of eyes on your money from someone with nothing to sell you, book a free clarity call here: Book a free clarity call.

Frequently asked questions

How do financial advisers get paid in Ireland?

Three ways: commission (paid by the product provider when you buy), fee-only (paid directly by you, with no product commission kept), or hybrid (a fee plus some commission). All three are legal if disclosed to you in writing.

What does fee-only financial advice mean?

The adviser is paid only by you, as a fee or for their time, and keeps no commission from any product provider. Their income does not depend on you buying a particular product, which removes the built-in conflict of interest.

Can an adviser call themselves independent if they take commission in Ireland?

No. Under the Central Bank's rules, an adviser can only use the term "independent" if their advice is based on a fair analysis of the market and they do not accept and retain commission.

How much does a financial adviser cost in Ireland?

With commission the cost is hidden inside the product and paid every year you hold it. With fee-only you agree a clear amount up front. There is a cost either way; the difference is whether you can see it.

How do I check a financial adviser is regulated in Ireland?

Search the Central Bank of Ireland's register of authorised firms to confirm they are authorised. Authorisation also gives you access to the Financial Services and Pensions Ombudsman if a complaint ever arises.