How Do Financial Advisers Get Paid in Ireland?

A client showed me a savings plan last year that he was sure was free.

It wasn't. He was paying a charge buried inside the product every month, and the person who sold it to him got a commission for putting him there. He just never saw any of it.

If you only learn one thing before taking money advice, learn how the person giving it gets paid. It tells you more than their qualifications ever will.

The three ways advisers get paid

Every adviser in Ireland uses one of these.

Commission. The product provider pays the adviser when you buy. You usually pay nothing visible up front, which is exactly why it feels free. The cost is inside the product, taken as a charge every year you hold it. The adviser earns when you buy, and earns more on some products than others.

Fee-only. You pay the adviser directly, as a flat fee or for their time. No provider pays them, and they keep no commission. Their income does not move depending on what you buy. This is how I work.

Hybrid. A fee for the plan, commission on the products put in place. A mix of the first two.

Why it changes the advice

Money has a direction. If an adviser only earns when you buy a product, the conversation bends toward buying one. If they earn more on product A than product B, guess which one comes up.

That is not always dishonesty. It is gravity. Even a good person feels the pull of how they get paid. Fee-only removes the pull, because the answer "you don't need to do anything" pays the same as "here's a product."

You are allowed to ask

Under the Central Bank's Consumer Protection Code, intermediaries now have to publish the commissions they receive on their own website. So the information is there, and you are entitled to it.

Before you act on any recommendation, ask one plain question: how do you get paid, and what do you earn if I do this? A straight answer is a good sign. A vague one tells you plenty.

The fuller picture, including what the "independent" label really means and what advice actually costs, is in the main guide: Fee-only vs commission financial advice in Ireland.

This is general information, not personal advice

These are the rules as they stand, not a recommendation for your situation.

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 keep more of what they earn.

If you want a second opinion from someone with nothing to sell you, book a free clarity call.

Frequently asked questions

How do financial advisers get paid in Ireland?

Three ways: commission (the provider pays them when you buy), fee-only (you pay them directly and they keep no commission), or hybrid (a fee plus some commission). All three are legal if disclosed to you in writing.

Is it better to pay a financial adviser by fee or commission?

Fee-only removes the conflict of interest, because the adviser earns the same whatever you decide. With commission, the adviser only earns if you buy a product, which can shape the advice.

Do financial advisers in Ireland have to disclose their commission?

Yes. Under the Central Bank's Consumer Protection Code, intermediaries must publish the commissions they receive on their website, and you are entitled to ask what they earn from a recommendation.

What does fee-only financial advice mean?

The adviser is paid only by you and keeps no commission from any provider, so their income does not depend on you buying a particular product.