Fair fees are a governance issue, not just a commercial one

Fair Fees Are a Governance Issue, Not Just a Commercial One

In my experience advising high-net-worth families and their professional advisers, fee structures are too often treated as a commercial footnote rather than a governance cornerstone. Yet the way trustees are remunerated directly influences behaviour, risk appetite and ultimately, outcomes for beneficiaries.

As we move through March, heightened regulatory scrutiny and growing beneficiary activism are reshaping expectations of transparency and accountability. Trustees must be able to demonstrate not only that fees are competitive, but that they are aligned with the long-term purpose of the structure.

Ad valorem fees, for example, can unintentionally incentivise asset accumulation over strategic distributions. Transaction-based fees may encourage unnecessary activity. Even fixed fees, while predictable, can create tension if the scope of work evolves beyond the original mandate. None of these models are inherently flawed, but each carries behavioural implications that should be consciously addressed at board level.

For high-net-worth individuals and their advisers the question is not simply “What does it cost?” but “What behaviours does this pricing model reward?”

At Reckon, we encourage clients to view fees through a governance lens: clarity of scope, transparency of calculation and documented alignment with the trust’s objectives. When remuneration structures are thoughtfully designed, they support prudent stewardship, balanced decision-making and defensible governance.

Fair fees are not just about value for money. They are about safeguarding intent, protecting beneficiaries and strengthening fiduciary integrity.