According to the latest Investment Trends Planner Business Model report, the average planner has now lowered its charge to US$2,350 for the cost of comprehensive advice for a typical client from to US$2,600 in 2010.
However, the report claims that this reduction is thanks to cuts in the cost of providing advice, rather than planning practices shaving down their profits.
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Wealth Professional quoted Provisio company’s director of scaled advice Cameron O’Sullivan saying that the increasing demand for scaled advice will make cost control a vital consideration for financial advisers going forward.
"Advisers are starting to use technology wisely to trim the cost of providing advice, and that is a good thing," Wealth Professional further quoted him saying.
"But in the vast majority of cases there is still more that can and should be done, particularly to be ready for a forecast increase in scaled advice and fee for service.
"In this environment advisors will need to be able to cover a range of advice requests, while staying profitable," O’Sullivan opined.
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