In a recent media release, Aequis CEO Steve Harvey explains the approach to fees that Aequis has given the latest industry and consumer findings.

Media Release

Latest research shows that consumers can pay up to 13 times more in commissions on their superannuation than for fee for service financial advice.

Leading Tasmanian financial advisors Aequis say the current economic climate emphasises the need for superannuation clients to obtain independent financial advice. National research just issued from industry actuaries Rice Warner confirms that consumers are considerably better off with fee for service advice and avoiding commissions.

Aequis Chief Executive Officer Steve Harvey said one example contained in the research showed that advice to a client on the Federal Government's co-contribution payment attracted a fee of $660. Commissions on the same payment would have amounted to $3876. Other examples, tested over a five-year period showed commissions of up to 13 times greater than advisers' fees.

Mr Harvey said Australian consumers were looking for quality advice that was in the client's best interest.

"We firmly believe that when the client is paying directly for the advice it establishes the right environment for the delivery of quality advice that is in the client's best interest," he said.

"Removal of commissions means there is no incentive to recommend particular products, ensuring the advice is appropriate. The value of the advice can be assessed against the fee and the client is able to make an informed decision.

"It is simple, independent and transparent and puts financial advice on a similar fee-for-service basis to that provided by accountants and lawyers.

"With the family home, superannuation is perhaps the most important investment Australians have and now more than ever there is a need for consumers to obtain quality advice."

Mr Harvey said Aequis firmly believed that if it could not add any value through the advice it provided, then it should not charge for the advice.

"For many clients, the advice required will not result in the placement of any product. Separating the advice fee from the influence of commissions ensures that the client can receive that quality advice in their best interest without any compromise."

* Aequis advisers have been recognised nationally for the value and quality of the advice being provided to clients. Aequis advisers have been national winners of the Financial Planning Association Value of Advice Awards in each of 2006 and 2007 and a national finalist in 2008. This outstanding result is a testament to the focus at Aequis on delivering the most appropriate advice for clients on a fee only basis.

Contact:
Belinda Jefferies
Marketing Manager
T: 03 6282 2822
F: 03 6245 0545
E: belinda.jefferies@aequis.com.au