HOW DO FINANCIAL PLANNERS CHARGE FOR THEIR SERVICES?
A financial planner will generally charge a flat dollar fee for the initial advice provided. This may range from $500 to $10,000 depending on the complexity of your financial situation and the complexity of the advice provided. However, the majority of advice pieces will cost between $2,500 and $4,000 for relatively comprehensive advice.
A financial planner may also charge you an ongoing fee for service. This will either be a flat dollar fee per month, or a fixed percentage fee calculated and levied on the value of your investment portfolio.
Changes under FOFA (future of financial advice legislation)
Since 1 July 2013, financial planners are banned from receiving commissions on financial products (excluding personal life insurance policies) or financial product advice given to a retail client. In fact, financial planners are now banned from receiving any form of conflicted remuneration. This means they are banned from receiving any type of remuneration (monetary or otherwise) from a financial product provider that could reasonably be expected to influence the financial product recommended or the advice provided.
However commission 'arrangements' entered into before 1 July 2013 are grandfathered (preserved) provided that a client established an account with the product provider before 1 July 2014. This means that many financial products sold before 1 July 2014 still have commissions attached.
The changes implemented under FOFA do not ban percentage-based entry fees on financial products from being charged by product providers or financial planners, provided clients give their express consent to the entry fee being paid to the financial planner, and the exact size of the entry fee is disclosed and acknowledged.
Common objectives and how they can be dealt with; Estate planning for young families and older clients and blended families - what engages the clients. Asset protection - the risks arising from blended ... Watch video
As goals-based advice continues to become an increasingly important part of an adviser's offering and service delivery, investment platforms are playing a pivotal role in bridging the relationship ... Watch video
Advisers share their personal experience on how their aged care services have assisted their business practice Discussion on what were the key hurdles at the start of the transition and how they have ... Watch video
Former AMP adviser sentenced27 March 2020, 12:30pmA former authorised representative of Charter Financial Planning has been charged over what the judge described as a betrayal of his clients. Read more