Genuine question: Are advisers increasing their fees just because they can or because they have to?
According to the well-publicised KPMG study that was commissioned by the FSC, comprehensive advice costs $5335 per client and takes 23.9 hours on average to produce.
According to ASIC report 627 most people are after superannuation and retirement advice (not comprehensive advice) - and most people do not have complex arrangements.
There is no way in the world it should be taking 24 hours to produce this type of advice - even with all the compliance steps we need to abide by.
Retirement advice for everyday people (most people) should take about 10 to 18 hours tops (depending on whether its for singles or a couple).
The figures that keep getting thrown around do not make much sense, especially as financial advice technology has improved in recent times.
It should still be possible to run a profitable business charging $2,000 - $3,000 per client - especially for advisers with no office overheads.
I get the feeling that too many advisers are charging what they can get away with.
Just my opinion.