{"id":36421,"date":"2017-03-20T14:00:29","date_gmt":"2017-03-20T03:00:29","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=36421"},"modified":"2017-03-22T06:32:43","modified_gmt":"2017-03-21T19:32:43","slug":"advisers-report-higher-costs-and-lower-incomes","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2017\/03\/20\/advisers-report-higher-costs-and-lower-incomes\/","title":{"rendered":"More Advisers Charging Fees for Risk Advice"},"content":{"rendered":"

Interim findings from Elixir Consulting’s<\/a> latest Adviser Pricing Models Research<\/a> suggests more risk-focused advisers are developing fee-based remuneration options for their businesses.<\/p>\n

<\/p>\n

\"Elixir<\/a>
Elixir Consulting MD, Sue Viskovic<\/figcaption><\/figure>\n

In releasing a small selection of initial findings, Elixir MD, Sue Viskovic<\/strong>, noted, \u201cWe have certainly found more advisers are charging some iteration of fees for their risk advice, and the numbers of those replacing commissions with fees have lifted from the last report two years ago.” Viskovic added that her team was “…discovering some interesting techniques being used, and opinions of advisers who have commenced the process.”<\/p>\n

We have certainly found more advisers are charging some iteration of fees for their risk advice…<\/h6>\n

Other interim results include the finding that three-quarters of financial advisers have raised costs over the past five years, while less than one in five has kept them at the same level.<\/p>\n

The group found that advisers who have responded to its pricing model survey are only making about a third of their targeted earnings. Viskovic said while the average earnings before income tax (EBIT) that advisers were targeting was 35% (after a normalised salary to principals of $150,000), the average actually being achieved was 13.5%.<\/p>\n

Advice businesses which were reaching an EBIT above 30% averaged 27 new clients in the past year, according to Elixir, with advisers preferring new clients who were referred without the adviser asking for the referral.<\/p>\n

Given this finding, Viskovic said it was not surprising that 75% of advisers reported an increase in costs in the last five years compared to 17% who reported no cost increase.<\/p>\n

The research survey<\/a>, which is also looking at the specific amount advisers charge for initial, ongoing, risk only and limited advice as well as when fees are introduced into the advice process, closes shortly, with full details of the findings set to be released next month.<\/p>\n

Based on these findings the latest Riskinfo poll<\/a> asks the question:<\/p>\n

“Will you be making changes to your business model to accommodate the remuneration changes contained in the LIF Reforms?”<\/strong><\/p>\n

Click here<\/a> to vote or comment.<\/p>\n","protected":false},"excerpt":{"rendered":"

Interim findings from Elixir Consulting’s latest Adviser Pricing Models Research suggests more risk-focused advisers are developing fee-based remuneration options for their businesses.<\/p>\n","protected":false},"author":3,"featured_media":36457,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4,270,5],"tags":[4247],"class_list":["post-36421","post","type-post","status-publish","format-standard","has-post-thumbnail","category-general","category-products","category-remuneration","category-services","tag-feature"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36421","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=36421"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/36421\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/36457"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=36421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=36421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=36421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}