The average Australian believes that financial advice should cost just $300 per appointment, according to a survey to be released by Investment Trends this week.<\/p>\n
The survey compared the views of more than 1,300 financial advisers against 1,100 investors, to determine whether the two groups shared the same opinions on the value of advice.<\/p>\n
Preliminary results reveal that, on average, investors believe financial advice should cost, on average, $300 for the first visit and $300 for subsequent visits.\u00a0 Yet the survey of financial advisers found that the break-even cost of providing full advice was $2,700, and providing simple advice was $1,200.<\/p>\n
Similarly, planners estimated on average that the cost of maintaining a client file, including periodic reviews, is $1,400 per annum, almost five times the “per-visit” fee consumers expected to pay for ongoing advice.<\/p>\n
“At a time when planners are increasingly moving to a fee-for-service model, our survey shows a striking disconnect between the expectations of planners and their clients”, said Investment Trends Analyst Recep Peker<\/strong>.\u00a0 “It also suggests that many investors may be unaware of the true cost of advice under existing asset-based fee models.”<\/p>\n The survey did find that consumers were prepared to pay more to advisers for a review of their existing financial plan.\u00a0 According to Mr Peker this may be because these consumers have already had “first-hand experience” with a financial adviser.<\/p>\n In addition, the value that advisers themselves placed on advice also differed widely.\u00a0 The study found that the estimated break-even cost of providing advice varied from as little as $100 to as much as $10,000.<\/p>\n “Our survey reflects the diversity of financial planning businesses, which cover the spectrum from home-based businesses operated by a sole planner, to large dealer groups with hundreds of planners nationally”, said Mr Peker.<\/p>\n The Investment Trends June 2010 Planner Business Model Report is based on a detailed online survey of more than 1,300 financial planners conducted between 19 August 2010 and 10 October 2010.\u00a0 The survey investigated key features of financial planning practices, with a particular focus on the challenges posed by changes in the regulatory regime.<\/p>\n","protected":false},"excerpt":{"rendered":" The average Australian believes that financial advice should cost just $300 per appointment, according to a survey to be released by Investment Trends this week.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,270],"tags":[],"class_list":{"0":"post-8278","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-compliance-regulation","7":"category-remuneration","8":"headers-new"},"_links":{"self":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/8278","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\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/comments?post=8278"}],"version-history":[{"count":0,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/posts\/8278\/revisions"}],"wp:attachment":[{"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/media?parent=8278"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/categories?post=8278"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/riskinfo.com.au\/news\/wp-json\/wp\/v2\/tags?post=8278"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}