fees and commissions
What price for financial advice?
Two days before Christmas the Australian Securities and Investments Commission (ASIC) released an interesting report into the financial advice industry titled “Access to financial advice in Australia“. There are many interesting insights in the report – the one I will highlight today is the cost of delivering financial advice. In conducting the research ASIC “surveyed [...]
Why performance based fees for advice won’t work
“About 19 per cent of investors say their preferred model for paying an adviser is performance-based fee,” according to Mark Johnston, principal of research firm Investment Trends. (Reported here today). Performance based fees will not work for most types of financial advice. Performance based fees for finance advice may only be appropriate when: The advice [...]
Fee based advice hard to find
If you are wary of your financial adviser being biased by commissions then you will want to work with an adviser who charges fees and rebates commissions to you. But according to new research released today such an adviser may be hard to find, with only approximately 1 in 10 Australian financial advisers focused on [...]
Profit sharing with your adviser
If you paid your financial experts solely on the basis of a percentage of the benefit to you of their recommendations, what percentage would you prepared to give them? I just had a conversation with a client who I sense is very fee conscious. Fee appears to be the major, initial focus and by comparison [...]
How do you prefer to pay for financial advice?
One year ago a large institutionally owned financial advice group switched its charging structure to fee-for-service from commission. Since then all new clients have been fee-for-service. Existing clients have been able to opt to continue their commission structure. Interestingly, one year on the dealer group reports that most existing clients have opted to continue with [...]
How to reclaim trail commissions
Do you have investments, superannuation accounts and/or insurance policies sitting around? If you’ve had them for years then it’s quite possible that some company somewhere is receiving an ongoing (trail) commission from that product, and you possibly don’t know who they are. If you’ve had no contact from them then they are just receiving the [...]
What is fee for service financial advice?
The financial advice industry is still evolving and consequently there are lots of different ways that you will pay for the education, guidance and advice that you receive. Prior to seeking advice it is a good idea to be clear on what type of advice you are seeking and also to get a handle on [...]
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