Fee offset

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Fee offset is a situation in which an advisor says, "I will do a financial plan for you and charge you $2,500 (as an example), but if I receive any commissions from selling you products I will "offset" this from the fee". In other words if the client commission is greater than $2500 then the financial plan is free. If the commissions are less than $2500 the client pays the difference.

This is structured as an inducement to have the client implement the plan with the financial planner, and by the financial planner to ensure they are compensated for the work on the plan.