Adviser remuneration arrangements… where to from here?
Since the Royal Commission, there has been much talk about the conflicts inherent in the existing adviser remuneration structures.
But what about the practicalities of ensuring your business is profitable and compliant?
Transitioning away from commissions may well be costly for many practices, but it is something that has been broadly accepted by the industry.
The questions around advice fees are somewhat more problematic and there is considerable confusion as to how to proceed.
Many of our clients are asking questions such as:
- Are ongoing advice fees still allowed?
- What should my charging model be?
- Are FUM-based fees still valid?
- How do I structure appropriate Client Service Agreements?
- How do I create a value proposition for all of the work that I do for clients beyond the ‘annual review’?
- Should my staff have balanced scorecards and how do I set up compliant balanced scorecards?
These are all valid questions and ones that advice practices will need expert guidance on in finding the right path to set them up for success.
At Scope Legal we can:
- Review your remuneration arrangements as a whole to ensure they are compliant
- Ensure that your Client Service Agreements accurately reflect all of the work that you do for your clients
- Help you to implement compliant balanced scorecards
- Give you the guidance you need to have confidence that you are set up for success.
One thing is for sure – the landscape is going to change, it’s just a matter of when. The Commission’s recommendations mean that the status quo cannot remain. So, make sure you understand your obligations and get the advice you need to future-proof your business.
For more information and a no-obligation initial consultation, please contact Melanie Taylor or Chaz Dheer on 02 8007 4143 or enquiries@scopelegal.co.
