How does compensation for financial planners and wealth managers in the UK compare to that in the US? I have a screening call for a wealth management apprenticeship tomorrow and would like to know more about how bonuses are structured. The salary is approximately £40k once qualified, but what can I expect to earn based on Assets Under Management (AUM)?
I’ve heard that in the US, there’s a 1% commission; is that similar in the UK?
One response
The differences in compensation structures for financial planners (FP) and wealth managers (WM) between the UK and the US can be quite significant. In the UK, salary packages tend to be more fixed and generally feature a base salary complemented by potential bonuses, while in the US, many financial roles often include a higher variable component tied to performance.
Regarding your specific question about bonuses and assets under management (AUM), it’s important to note that the commission structures can vary greatly between firms and even by individual performance. In the US, it is not uncommon for wealth managers to receive a percentage of AUM as a fee, which can sometimes be around 1%. However, in the UK, the fee structure may lean more towards a fee-for-service model or retain a percentage of AUM but is often disclosed transparently rather than based on stealth commissions.
As for your salary of around £40,000 once qualified, this will typically represent a base salary, and any additional earnings through bonuses or commission would likely depend on the amount of AUM you manage and the firm’s specific commission structure. Be sure to clarify these details during your screening call. It’s also a good idea to ask if bonuses are tied to individual performance, team performance, or overall firm performance, as this can affect your total earnings significantly. Good luck with your call!