How are you compensated for your services?

Posted in: General

How are you compensated for your services?

The methods of remuneration that we receive for the services provided are dictated by the specifics of the services being provided.  Typically we charge:

 

  • An hourly fee for the preparation of a strategic financial plan.
  • An implementation fee for implementing any agreed investment recommendations.
  • Ongoing service fees for the provision of continuing investment advice and portfolio management services.

 

Fees are structured in accordance with those disclosed within the Banksia Partners Financial Services Guide. Clients can elect (at their choosing) an agreed annual (flat) fee for ongoing services debited from their nominated account paid on a monthly basis or to fees calculated as a percentage of assets under management and paid from financial services product providers.

 

We consider that a flexible fee structure is important because it ensures those clients who are not in a position to pay directly for the advice they receive can still receive the benefit of our advisory services. In many cases (i.e. implementing life insurance recommendations), we are paid commissions directly from the product provider (i.e. insurance company) at no direct cost to our client.

 

Fees payable are generally agreed prior to our engagement and are normally formalised in a standard ‘Letter of Engagement’ signed by the client and Banksia Advisor.   All fees, commissions, volume bonuses, ‘soft dollar’ benefits, etc, are disclosed in the body of our initial ‘Statement of Advice’.

 

Importantly, each Banksia Advisor is a salaried employee whose remuneration is not directly linked to the amount of revenue generated.

Posted in: General