Advisers accept remuneration fate and make transition
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Many advisers believe the remuneration debate is over and it’s now time to make the transition from commissions to a fee-based service, according to Elixir Consulting managing director Sue Viskovic.
Advisers who have been “dragged along kicking and screaming” now figure they might as well get on with transitioning to a fee-based model and are of the view “let's accept our fate and do something about it”, Viskovic said.
Almost a half the attendees at various dealer group professional development days admitted to having started making the transition, but when asked whether they feel they have their model right, all but one adviser said no, Viskovic said.
Viskovic believes it is important that advisers think about a switch sooner rather than later: “Don’t wait until it’s too late; don’t wait until it’s closer to the time, because it takes time.”
However, with the Australian Securities and Investments Commission’s (ASIC's) recent move away from asset-based fees raising questions over whether or not ASIC will legislate against it as a method of charge, Viskovic admitted this made it difficult for advisers who are still unsure of what will and won’t be an appropriate form of remuneration.
Viskovic said the model of choice was now evenly spread between asset-based fees and fixed dollar fees, despite the majority of advisers wanting to take the asset-based route a year ago.
“There certainly does seem to be more advisers happier to look at the fixed fees option.” Viskovic said.
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