News
Federal Government concern over advisory pricing models
There has been an abundance of comment in the media about advisory pricing models, particularly where an advisory company receives income from using a product as opposed to providing services to clients investing their money with them. At times, the opinion expressed on this issue seems to present more a wave of criticism than any informed debate. Over this financial year, AXIS Financial Group has responded to a detailed questionnaire to the Financial Planning Association (FPA) of Australia as well as responding to a consultation paper from the FPA on this particular subject.
AXIS Financial Group operates on a fee for service basis and provides clients with options on payment models, whether the client prefers to pay directly for our services or if they prefer to fund our fees, as disclosed, from their investment account. Product arrangements, whether superannuation or otherwise, are often entered into but not effectively reviewed on a regular basis. Indeed it is worth mentioning that the products now available are the consequence of recently improved systems capability, where new financial services product is being presented to the market just as the new systems capability is going through final testing. Just consider the potential for change in the next 10 years when you start to think of what is done now which was not possible just 5 years ago!