Centrepoint Alliance has announced a new fee structure for financial advisers who choose to work part-time, which it says is breaking new ground in the Australian market.
A statement from the company says that research from Roy Morgan shows part-time work is a growing trend, with more than 4.3 million Australians currently employed on a part-time basis.
Yet, according to Paul Cullen, Group Executive Advice at Centrepoint Alliance, financial advice has traditionally not been viewed as a part-time profession, adding that there has been a reluctance to offer reductions in fees for advisers whose personal circumstances suit reduced working hours.
…advisers should be entitled to be supported…if they require flexible working arrangements…
“However, financial advice is no different to any other occupation and advisers should be entitled to be supported by their licensee if they require flexible working arrangements to balance work and family commitments,” he says.
Cullen says he has observed increased demand for part-time opportunities among the advice community in recent years, particularly among working parents and those who have carer responsibilities.
“We believe that offering this new fee arrangement will help to make the financial advice industry more attractive and accessible for all.”
Variable costs may be pro-rated
The new flexible fee model is available to financial advice firms with more than one authorised representative.
The company says that for advisers working part-time variable costs, including governance and research queries, along with technical and compliance support, may be pro-rated according to the number of days worked.
It adds that advisers who are taking maternity or paternity leave will be able to suspend fees in full for up to 12 months, or pay a reduced fee if they wish to retain access to masterclasses and webinars and complete CPD.
“We believe that offering flexibility around fees will not only enable greater diversity in the advice industry but will also provide more options for those firms who may require advice support on a part-time basis,” Cullen says.
