# Commission-based advisor

> A commission-based advisor is paid by the companies whose financial products they sell, such as insurance, annuities, or mutual funds, rather than by the client directly.

Canonical page: https://find.wellspent.co/glossary/commission-based/

Commissions are typically built into the product: a sales charge on a fund, or a payment from an insurer when a policy is sold. Clients may pay nothing out of pocket, but the cost shows up in the product.

Broker-dealer representatives who recommend securities to retail customers must follow the SEC's Regulation Best Interest, in effect since June 30, 2020. That is a different standard from the fiduciary duty investment advisers owe.

## Sources

- [FINRA BrokerCheck](https://brokercheck.finra.org/)
- [SEC: Regulation Best Interest](https://www.sec.gov/regulation-best-interest)

## Related terms

- [Fee-based financial advisor](https://find.wellspent.co/glossary/fee-based.md)
- [Fee-only financial advisor](https://find.wellspent.co/glossary/fee-only.md)
- [Fiduciary](https://find.wellspent.co/glossary/fiduciary.md)