Like it or not, we live in a skeptical world.

As a result, clients worry about things that would have been non-issues in the past.

So if for example you're with an independent firm, given all the media coverage to swindlers like Bernie Madoff and Earl Jones, some clients fret about whether their money is safe.

And in light of the negative publicity for the financial industry over the last while, some clients are concerned about whether their financial advisors' compensation is always aligned with their interests.

The hard reality is that most clients won't bring these concerns up ... but just because someone doesn't raise questions about how you're paid doesn't mean there aren't issues lurking in the background.

Client concerns about compensation

Canada's leader in tracking investor attitudes towards the advisors and firms they deal with is Vancouver based Corporate Insights. Over the past number of years, they've interviewed over 50,000 investors who work with some of Canada's largest investment firms.

Corporate Insights ask to key questions related to compensation:

First are investors clear on how they are charged?

58% of investors answer yes to this question - which means about 4 in 10 aren't clear on this.

And  second, would investors like an update or clarification on fees and charges to their account?

Here, a full 65% of clients say yes.

One other interesting finding from Corporate Insights: Having this conversation is associated with a higher share of client assets.

Raising the topic of fees

The challenge is how to introduce this topic without being defensive or without creating an issue where none exists.

One possibility is to say something along the lines of:

"I recently had a conversation with a client who wasn't entirely clear on all the fees and charges to his account.

I know we're all busy so this may not be a concern to you ... but if you'd like to spend a few minutes on  this when we next meet, I'm happy to talk about this or any other subject you'd like to discuss.

Is there anything else you'd like to put on the agenda for our next meeting?"

Now pause and wait for your client to answer ...

They may well say there are no other issues to talk about ... or may in fact say they'd like to talk about fees or some other issues.

Regardless of the response, you've made it easy for clients to bring a topic to the surface that may have been causing them some concern.