Fees 'a byproduct of doing a good job'
Rather than getting hung-up on fees, planners should focus on providing sound financial advice and adding value, says Custom Wealth Solutions chief executive Chris Appleyard.
"If you've got a problem with your fee, the client's going to have a problem with your fee," he said.
"The fee will take care of itself. It's a by-product of doing a good job," he said.
According to Appleyard - who runs his own dealer group - the industry needs to "stand for something" and improve the value of advice.
"It hacks me off [when people say] 'How do you charge, what do you charge?'… If that's important to you, get out now - because you're not going to like what I charge," he said.
Custom Wealth Solutions takes the "solicitor's approach" and is completely fee-for-service, Appleyard said.
"Here is how you engage us, here is what we charge, and here is what we're accountable to do for you - for this cost per month. That's what's expected of us. No more 'oh yeah, we'll take 1 per cent of what we manage'," he said.
Appleyard claims he has never had anyone question his fee.
"When you demonstrate to someone with a good corporate structure that you're saving them $40,000 a year in tax, [you can] charge them $20,000 and they'll thank you when you walk out the door," he said.
Some of Custom Wealth Solutions' higher-end clients pay a performance fee, Appleyard said.
"[They tell me my] benchmark's 3 per cent over the cash rate. Everything I make over that, I'm going to take 33 per cent. That's the beauty of having [your own] AFSL [Australian financial services licence]," he said.
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