{"id":70617,"date":"2024-03-26T19:17:56","date_gmt":"2024-03-26T09:17:56","guid":{"rendered":"https:\/\/riskinfo.com.au\/news\/?p=70617"},"modified":"2024-04-02T10:34:23","modified_gmt":"2024-04-02T00:34:23","slug":"charging-fees-for-risk-only-advice","status":"publish","type":"post","link":"https:\/\/riskinfo.com.au\/news\/2024\/03\/26\/charging-fees-for-risk-only-advice\/","title":{"rendered":"Charging Fees for Risk-Only Advice?"},"content":{"rendered":"<div id=\"polls-320\" class=\"wp-polls\">\n\t\t<div class=\"pollHeader\"><strong>When delivering risk-only advice, it\u2019s ok to charge an advice fee to supplement any commission income.<\/strong><\/div><div id=\"polls-320-ans\" class=\"wp-polls-ans\"><ul class=\"wp-polls-ul\">\n\t\t<li>Agree <small>(78%)<\/small><div class=\"pollbar\" style=\"width: 78%\" title=\"Agree (78% | 197 Votes)\"><\/div><\/li>\n\t\t<li>Disagree <small>(18%)<\/small><div class=\"pollbar\" style=\"width: 18%\" title=\"Disagree (18% | 46 Votes)\"><\/div><\/li>\n\t\t<li>Not sure <small>(4%)<\/small><div class=\"pollbar\" style=\"width: 4%\" title=\"Not sure (4% | 11 Votes)\"><\/div><\/li>\n\t\t<\/ul><div style=\"text-align: center\"><\/div><\/div>\n\t\t<input type=\"hidden\" id=\"poll_320_nonce\" name=\"wp-polls-nonce\" value=\"bfc263f0c5\" \/>\n<\/div>\n\n<p>Our latest poll is based on findings, hot off the press, which reveal a growing cohort of advisers charge their clients a fee when delivering stand-alone life insurance advice.<\/p>\n<p>As we report elsewhere (see: <a href=\"https:\/\/riskinfo.com.au\/news\/2024\/03\/26\/1689-risky-advice-fee\/\" target=\"_blank\" rel=\"noopener\">$1,689 &#8216;Risky&#8217; Advice Fee<\/a>), 44% of advisers participating in Elixir Consulting&#8217;s nation-wide practice management survey now levy a fee on top of their commission income when providing risk-only advice.<\/p>\n<p>There appeared to be a general acceptance of this finding when it was shared with advisers attending our <a href=\"https:\/\/riskinfocus.com.au\/24-regsitrations\/\" target=\"_blank\" rel=\"noopener\">Riskinfocus 24<\/a> events held in recent weeks, but comments and feedback provided during other sessions at Riskinfocus 24 confirm other individual risk-focussed advisers as well as risk-focussed licensee firms prefer to maintain their commission-only revenue model.<\/p>\n<p>The need to supplement existing life insurance commissions mandated under the Life Insurance Framework reforms is driven in part by the nature of the adviser and the advice business. Established advisers and advice businesses have been able to settle into the current 60\/20 hybrid commission mandate due to the strength and size of their renewal income portfolio.<\/p>\n<blockquote><p>&#8230;many are not in as strong a financial position<\/p><\/blockquote>\n<p>Of the declining number of advisers who remain in the sector, however, many are not in as strong a financial position, such as newer industry entrants as well as more established businesses which continue to struggle with profitability as a result of the significant increase to the cost of delivering advice due to reforms introduced following the fallout from the Global Financial Crisis.<\/p>\n<p>Where do you stand on this issue? Do you think the life insurance advice sector has evolved &#8211; especially over the last five-to-ten years &#8211; to the extent that it&#8217;s now acceptable in the eyes of your peers to supplement commission income with a client fee when delivering risk-only advice?<\/p>\n<p>Even for the 51% of risk specialists who still rely on commission income only, do you object to others who elect to, or are being forced to charge, a fee to supplement their risk-only advice business model?<\/p>\n<p>Tell us what you think and we&#8217;ll report back next week&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Our latest poll is based on findings, hot off the press, which reveal a growing cohort of advisers charge their clients a fee when delivering stand-alone life insurance advice. As we report elsewhere (see: $1,689 &#8216;Risky&#8217; Advice Fee), 44% of advisers participating in Elixir Consulting&#8217;s nation-wide practice management survey now levy a fee on top [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":70622,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,49,270],"tags":[],"class_list":["post-70617","post","type-post","status-publish","format-standard","has-post-thumbnail","category-compliance-regulation","category-polls","category-remuneration"],"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/70617","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=70617"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/70617\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media\/70622"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=70617"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=70617"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=70617"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}