There is a lot of media coverage and discussion about how financial advisors get paid. Trailing commissions, fee-for-service, pay as you go etc. It can get very confusing. How I get paid, simply, is this:
When implementing my investment recommendations, we are normally paid by the financial institution based on the assets under management from you, the client. These fees are banded, and come down as your assets grow in value. They are also tax-deductible on corporate and non-registered accounts.
My fee comes out of the Management Expense Ratio (MER) that is charged by every investment company. The video below helps explain all the elements that are included in the MER and why it is charged.
Understanding the Management Expense Ratio (MER):