Hi guys, I am an economics undergraduate writing an essay on creating a reward scheme that provides an incentive for my financial advisor to deliver the level of effort on planning my selection of risky investments that creates a return (dependent on effort and some random exogenous variable) that is best suited to my risk averse preferences. My question for you guys is if any of you have had experience with/are financial advisors? You see i have read that FA are paid on a Commission only basis, fee only, or fee based. Now since i have to establish a reward scheme i am working at the moment on a fee only FA. Now as i understand it they are paid a % of assets under management + hourly rates + planning fees + re planning fees? (is this correct?) Assuming it is, what is it that prompts the FA to re-plan the position? I've ruled out a periodic re-plan based purely on time as i don't think that could be efficient. So it must involve the return on the investment and some sort of boundary. Since it is for a risk-averse principal i guess that the most efficient re-plan is when the risk value of the portfolio changes past some sort of boundary? (clearly a re-plan of the investment every time risk changes is neither efficient for principle or agent) So yeah if any of you guys have experience of what prompts a financial advisor to re-plan a portfolio let me know. How knowledgeable are they of the changing risk of the portfolio? Any reading on either the mathematics behind the risk factor of a portfolio would be nice. Thanks!