Fee-For-Service for Financial Planners

16-Mar-2010 A survey in 2008 found that less than 20% of financial planner's revenue came from fee-for-service charges. However this is likely to change if the government implements the recommendation on remuneration models and conflict of interest provided in a report by the Parliamentary Joint Committee on Corporations and Financial Services released on 23rd November 2009.

The full report can be downloaded here.

The committee made a recommendation that "governement consult with and support industry in developing the most appropriate mechanism by which to cease payments from financial product manufacturers to financial advisers".

The above recommendation makes it clear that the committee supports a transition away from commission based remuneration practices. There were many submissions to the committee on the problems and benefits of a Fee-For-Service model but it was apparent that this method of remuneration for financial advisoers was the most appropriate alternative.

Time & Data Managment Software Consulting (TDMS) can assist with the transition to a Fee-For-Service model of remuneration for financial planning practices.

We provide sales, training and support for SAGE Timeslips, which is one of the most popular time and billing programs on the market today.

SAGE Timeslips helps to automate the process of time recording. By using a simple, time slip or timesheet window and electronic timers, the software facilitates an active and disciplined approach to time management.

It makes capturing time very quick, easy and transparent, and will ensure that advisors are accountable for what the bill.

Better yet, Timeslips links individual productivity to performance, and will assess the profitability of each client via simple automated report.

TDMS has also teamed up with CL Whelan and Associates who provide costing and pricing advice for the service sector. CL Whelan and Associates has prepared a manual on implementing a Fee-For-Service model specifically written for financial planning practices. This manual is available for purchase by visiting our website.

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