The emergence of fee-based planning: Reassess how you serve your clients

Aim: To explain the emergence of fee-based planning, the factors driving its growth, and a business model advisers could adopt to support fee-based financial planning.

Outcomes: At the end of this module advisers will understand:

  • Why fee-based planning is becoming more popular amongst proactive advisers;
  • How to implement fee based planning using the seasonal planning model; and
  • The benefits, to the client, and the adviser, of adopting the seasonal planning model.

Abstract: Trends in fiduciary responsibility, technology and client expectations are making it increasingly hard for advisers to rely solely on commission from selling investment products. Building a strong and sustainable business on fee-based revenue is possible with an approach such as the seasonal planning model. The model is outlined along with the benefits to both the client and the adviser.

(Although the article is set in the US context, the article may be useful in providing helpful insights for NZ advisory businesses in planning future growth.)