{"id":10808,"date":"2011-06-01T12:52:39","date_gmt":"2011-06-01T02:52:39","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=10808"},"modified":"2021-04-15T10:17:06","modified_gmt":"2021-04-15T00:17:06","slug":"the-cost-of-opt-in-your-say","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2011\/06\/01\/the-cost-of-opt-in-your-say\/","title":{"rendered":"The Cost of Opt-in – Your Say"},"content":{"rendered":"

\"Vote<\/a><\/p>\n

The Industry Super Network contends client opt-in measures will reduce advice fees for consumers. Do you agree?<\/p>\n

Our latest poll question asks:<\/p>\n

<\/p>\n

To what extent will the introduction of client opt-in measures have an impact on the cost of advice to your clients?<\/em><\/strong><\/p>\n

The Industry Super Network argues that because a Rice Warner report it commissioned revealed that ‘genuine’ fee for service is a lower cost to the consumer, based on personal exertion (ie: an upfront fee calculated on an hourly or set rate), compared with ongoing asset-based fees, this means that opt-in will lead to cheaper advice costs.<\/p>\n

But is this argument correct?<\/p>\n

The Rice Warner Report (click here<\/a> to read a copy) is a study on upfront versus ongoing fees in scenarios for super fund members. The report found that, in all scenarios, the cost to the client for advice was cheaper when the upfront model was used. However, this does not automatically lead to the assertion that opt-in will produce lower advice fees.\u00a0 It is more so an argument that banning investment and super commissions will have this effect.<\/p>\n

The very positive aspect of client opt-in is that, if implemented, it will minimise the chances of a client paying fees for advice services they do not receive. But this is very different from arguing that the opt-in process itself will reduce client fees.<\/p>\n

There appear to be two considerations:<\/p>\n

    \n
  1. \n
    The average cost per client to the advice practice of administering opt-in and the extent to which that cost may have to be passed on to the client<\/div>\n<\/li>\n
  2. \n
    Whether opt-in measures of themselves will reduce the cost of advice to the consumer<\/div>\n<\/li>\n<\/ol>\n

    Our poll is asking you to consider point number two. Are there considerations within a client opt-in environment (other than a potential pricing increase due to additional administration costs) that would either increase or decrease the cost of advice that your clients will pay?<\/p>\n

    For example, would you change the way you structure your remuneration model, potentially reducing costs for your clients, as a result of the requirement to obtain a signature every two years to be able to continue to provide advice services, and charge a fee for doing so?<\/p>\n

    This is your opportunity to have your say about the potential impact of the cost of opt-in to your current and prospective clients…<\/p>\n

    \"Vote<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

    The Industry Super Network contends client opt-in measures will reduce advice fees for consumers. Do you agree? Our latest poll question asks:<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[],"class_list":["post-10808","post","type-post","status-publish","format-standard","category-compliance-regulation","category-polls","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/10808","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=10808"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/10808\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=10808"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=10808"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=10808"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}