Commission the income stream of the few
It is almost all or nothing when it comes to the role commission plays in financial planners' annual income, the Money Management Salary Survey reveals.
Data from close to 450 financial planners from across the nation reveals that 14 per cent reported that commission was part of their earnings, with five per cent saying their entire income stemmed from commissions.
However, it is unclear based on the findings of the survey if grandfathered and trail commissions were lost along the way.
The survey found that the higher planners' reported incomes were, the more likely they were to report earning commissions, with 50 per cent of those taking home more than $500,000 claiming that commissions accounted for between 90 and 100 per cent of their income.
While 43 per cent of those claiming incomes of $250,000 to $499,999, said commission formed a part of their earnings, with one in four of those earning between $220,000 and $249,999 reporting they were paid commission.
Although the proportion of those reporting that commission formed part or all of their income fell to below 15 per cent for those earning between $70,000 and $219,999 per annum, 24 per cent those taking home less than $70,000 said commission was part of their earnings.
The survey also found that 60 per cent of planners did not receive bonuses, with 46 per cent of respondents saying that their base salary accounted for all their earnings.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
