An advisor who uses mutual funds is paid in one of two ways: from inside the fund's fee, or through a separate fee on a fee-based account. On $1 million the two usually cost about the same; as the account grows, the separate fee gets cheaper.
The two ways advisors on mutual funds are paid
Inside the fund: a client name account. The investments are registered in your name, or your corporation's, with each fund company. Advisor-series funds include the advisor's compensation in the management fee. The fund company pays part of that fee to the dealer, which passes part of it to the advisor. For equity funds this trailing commission is often around 1% a year, and each fund's Fund Facts document shows the exact rate. Nothing is billed to you separately.
A separate fee: a nominee account. The investments are held by the dealer on your behalf, in F-series funds. These fee-based versions of the same funds have a lower management fee with no advisor compensation inside. The advisor's fee is agreed with you, charged separately through the dealer, and GST and QST apply to it. Across the industry, around 1% a year is a common fee for full-service advice (Wealth Professional, 2025).
Insurance works differently. The insurer sets the premium and pays the advisor a commission; the premium is the same whichever advisor places the policy. The compensation page explains both in more detail, with how conflicts of interest are handled.
What it costs in dollars
Take a large Canadian equity fund offered in both versions. In October 2026 its advisor-series version had a management expense ratio (MER) of about 2.24%, and its fee-based version about 1.09%. Here is the yearly cost for a corporation, with the separate fee at my usual starting rate and sales taxes included.
Amount invested
Advisor-series fund
Fee-based fund plus separate fee
$1,000,000
2.24%, about $22,400 a year
1.09% + 1% fee + taxes = about 2.24%, about $22,400 a year
$8,000,000
2.24%, about $179,200 a year
1.09% + 0.75% fee + taxes = about 1.95%, about $156,200 a year
Illustrative only. MERs change and differ by fund; the figures assume GST and QST of 14.975% on the separate fee and nothing else. Your own funds' Fund Facts show their actual costs.
Cost is only half of the comparison. I compare funds on what investors actually received, using returns reported after the management fee and the advisor's compensation, so the numbers you see are net of everything charged. A fund that costs more can still leave you with more, the same way a bag of apples for $3 is better value than one apple for $2.
Why I don't charge for advice
In 20 years I have never charged a client for the time we spend together: not the first call, not the review or the written summary, and not any conversation after that. A fair question follows: if the advice is free, is it built to lock you in? It isn't, because nothing locks you in.
Insurance costs the same through any advisor. The insurer sets the premium, and individual life insurance in Canada is almost always bought through a licensed advisor, so whoever places your policy, the price is the same. What differs is the advice. Through its contracts with 14 insurers, which together write almost all individual life insurance sold in Canada, iAssure Inc. offers the products worth having.
A fund costs the same wherever you hold it. In a client name account, the management expense ratio is set by the fund company and is the same at a bank or through another dealer. You can move your accounts at any time; nothing ties them to me.
What keeps clients is the comparison. I start from all the funds available in Canada, narrow them to the fund companies worth following, and compare their funds on past performance, after fees and after tax. The formal review is every six months; in practice, managing client accounts means comparing funds every day.
Questions are welcome. Some clients want many scenarios and a lot of explanation. That time is never billed, and it pays off for everyone: every hard question either confirms a choice or improves it, and the answer then serves the clients who never ask.
How I set fees
Many clients choose a client name account with advisor-series funds, where the fund pays me and nothing is billed separately. When a client prefers a nominee account with F-series funds, the annual fee is set on the total invested with me:
Total invested
Annual fee, negotiable
Under $2 million
1%
$2 million to $5 million
0.85%
$5 million to $10 million
0.75%
$10 million to $25 million
0.60%
$25 million and above
0.50%
The total is everything the family invests with me, grouped: the accounts of every corporation, holding company and trust, and each family member's personal accounts. The rate for that total applies to the whole amount, not in bands. Every rate is negotiable and is agreed with each client in writing, based on how complex the accounts are. Mutual fund accounts are held with WhiteHaven Securities Inc., which charges and reports the fee.
Advice itself is never billed. If you buy nothing, you pay nothing.
FAQ
Do you charge for advice?
No. The first call, the review, the written summary and every conversation after that are free, and have been for 20 years. Insurance premiums are set by the insurer and are the same through any advisor, a fund's management expense ratio is the same at any dealer, and accounts can be moved at any time, so free advice doesn't lock you in.
What is the difference between a client name account and a nominee account?
In a client name account, the investments are registered in your name with each fund company and use advisor-series funds, whose management fee includes the advisor's compensation. In a nominee account, the dealer holds the investments on your behalf in F-series funds, which cost less, and charges an annual fee agreed with you, part of which is paid to the advisor.
Are your fees negotiable?
Yes, all of them. The fee is agreed with each client in writing, based on how complex the accounts are. It is set on the total the family invests with me, with every corporate, trust and personal account grouped, and that rate applies to the whole amount.
Which is cheaper, advisor-series funds or a separate fee?
Around $1 million they usually cost about the same once sales taxes on the separate fee are counted. Above $2 million the separate fee generally costs less, because its rate goes down as the account grows while a fund's embedded compensation does not.
Can my corporation deduct the advisory fee?
A fee charged separately is sometimes deductible for the corporation, while compensation inside a fund simply reduces the fund's return. Whether it applies to you is a question for your accountant.
Do I pay more for insurance by buying it through you?
No. The premium is set by the insurer and is the same whichever advisor places the policy. The insurer pays the advisor's commission.
What does it cost if I decide not to invest or buy anything?
Nothing. The first call, the review of your numbers and the written summary are free.
Next steps
Want to know what your current investments cost you in dollars? Book a 30-minute call. I don't charge for advice, then or later.
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Financial Security Advisor · Mutual Fund Dealing Representative · Group Insurance & Annuity Plans Advisor
Advisor since 2004 and independent since 2008, focused on corporate investing and corporate-owned life insurance for incorporated business owners in Québec and Ontario. Mutual funds distributed through WhiteHaven Securities Inc.; insurance through iAssure Inc.
Disclosure. I am a licensed Financial Security Advisor, Mutual Fund Representative, and Group Insurance & Annuity Plans Advisor. I am not a lawyer, tax lawyer, or accountant. I discuss taxes only as they relate to specific insurance, investment, and estate strategies; I do not provide general tax optimization or comprehensive wealth strategy services. Content is educational only. Mutual funds offered through WhiteHaven Securities Inc. Insurance products offered through iAssure Inc. Coordinate decisions with your CPA, notary, or lawyer. See Disclaimer and Privacy.
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This content is for information and education only. It explains general concepts that may apply to incorporated business owners, but it is not personalized tax, legal, or investment advice.
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