Financial Planning

Fees

Financial planners have recently been under considerable pressure from regulators and consumer groups, such as the Australian Consumers Association, to switch from commission based remuneration to fee for service. The concern is that commission based remuneration potentially undermines the independence of planners - steering them towards products and services that may not be in the best interests of the client.

Clients should always be willing to question the reasons behind the selection of various investments and structures - particularly the attendant "costs". For example, you might ask why the planner why they have chosen to make investments through a "wrap" or "master trust" structure. These structures can improve the ease of reporting, but have costs which can detract from your net return on the underlying investments.

Exfin's view is that fee based remuneration is the generally preferred model and clients, when considering appointing a financial planner, should short list on this basis. At the very minimum, the non-fee planner must declare all commissions and “hard and soft” forms of remuneration received as a result of placing or managing the client’s affairs.  Exfin's financial planning providers are all independent, fee for service providers and will provide a quote in advance of any advice or service being provided, once a clear scope of work is agreed between themselves and the client.

If, for whatever reason, you wish to contact an advisor other than those available through Exfin, we would suggests that you use the Advisor search facility provided on the website of the Financial Planning Society of Australia (www.fpa.asn.au). In this context we continue to recommend that you assure yourself that the advisor is both qualified and experienced in dealing with expatriate issues and is, preferably, remunerated on a fee for service rather than commission basis.

Complete the Financial Planning inquiry form