Most advisers say they will not be commencing a move to a fee for service model any time soon.
Our poll results to date indicate advisers are wary about transitioning to fee for service, with 60% saying they have no intention to travel down this path in the next twelve months.
However over a quarter of advisers responding to our poll (28%) have indicated they will be commencing transition to fee for service in the coming year, while the poll has also produced a higher than usual ‘Not Sure’ vote of 12%.
This response indicates it is generally too soon for most advisers to contemplate transitioning to fee for service, but it also appears to indicate a degree of uncertainty in the minds of a significant number of practitioners about what the future looks like in terms of how they will be paid.
One adviser commenting on the poll suggests there is a feeling of inevitability about moving to fee for service, but says there is little practical help being provided to assist with the transition:
The problem is that while there is a lot of noise out there on fee-for-advice, there is nothing provided by the industry and our licensees on just how fee-for-advice may be implemented in a business that provides an advice and strategy service, not a product…
This comment appears to be valid across many segments of the industry, although some groups who have drawn a line in the sand (eg AMP, MLC, FPA) have developed programs designed to assist with moving a practice to a fee for service structure.
Other comments suggest there should be a greater focus on costs of compliance and other costs associated with the current FSR regime, rather than on the notion of how advisers are remunerated.
Where is your practice placed? How do you see your future remuneration structure? If you’re looking to move to fee for service, are you receiving help to make that move? Should you transition in the first place?
Make your voice heard…
