Fee-based compensation

Payment to a financial adviser of a set hourly rate, or an agreed-upon percentage of assets under management, for a financial plan. When the plan is implemented, the adviser may also receive commission on some or all of the investment products purchased, which would be fee-and-commission compensation.

A way to pay a broker, investment adviser or money manager in which the client gives a set hourly wage and/or a percentage of the assets under management in exchange for financial services. The contrasts with commission-based compensation, though some managers receive a combination of both.