Salaries vs the bottom line
INSTEAD of focusing on financial planning salary levels and their worth, Sydney-based management consultancy group Strategic Consulting and Training (SCAT), has looked at the salary debate from another angle.
According to SCAT analyst Neild McIntosh, the level of salaries paid to financial planners can also have a favourable effect on the planning company’s bottom line.
McIntosh says SCAT’s data system, Dashboard, found that on an ‘income per dollar of salaries paid level’, the benefits that planner salaries provide for their companies can be calculated.
The Dashboard data, which uses figures from June 30, 2001, found the top 25 per cent of salaries surveyed returned $2.29 per hour per dollar for the respective planning business.
The data also found that high profit firms were returning more than $3.03 per hour per working owner. McIntosh says when you consider how many people are being employed, it adds up to quite a substantial amount.
“What we pay these financial planners is a cost we have to incur. If you are drawing that in income, it’s a good investment,” McIntosh says.
Recommended for you
The corporate regulator has cancelled the AFSL of a Perth advice firm with the firm having previously seen its licence temporarily suspended in 2020.
Having proposed changes earlier this year, ASIC has clarified how it will support licensees with additional relief under the reportable situations regime.
AMP has partnered with BlackRock and research house Lonsec to provide a model portfolio capability on its North platform that offers “portfolio customisation at scale” to advice practices of all sizes.
Money Management rounds up actions ASIC took against advice individuals in the first half for FY25 from exam falsifications to dishonest conduct.
