In APES 230 Financial Planning Services, additional safeguards are included in the Standard where asset-based fees are being charged to clients. These are designed in order to minimise the likelihood that the members ability to meet the fundamental principles of the ethical Code, particularly those in relation to; integrity, objectivity and professional competence and due care, could be compromised.

Required: Why do you consider that the professional accounting bodies are particularly concerned with this type of fee (asset-based fees) being charged to clients as evidenced by the imposition of additional safeguards?