Financial Services Sunshine Coast

Financial Services Fees

Initial consultation

Free of charge and obligation (One hour).

Plan preparation, implementation and on-going advice

At PWA Financial Group we believe that the value we provide to our clients is based on the advice they receive, rather than the products we recommend.  This is a departure from the ideology of many Financial Planning practices where there is only a commission fee structure option available for clients. 

 

We offer 2 options for the payment of fees for the advice we prepare:

  1. Fee for Service – a fixed fee amount based on the level of service you require
  2. Traditional Commission model– a percentage fee amount based on the amount of money invested

Fee for Service

If a fee for service is payable by you rather than commission, the hourly fee rate is $240 per hour inclusive of GST.

OR

If a fee for service is payable by you rather than commission, the relevant fee will be calculated in respect to the complexity of the advice both in the initial consultation, implementation and involvement going forward.

All fees will be disclosed in our engagement letter prior to work being undertaken.  If you choose to pay a fee for service we may rebate to you part or all of the commission we would otherwise receive.

Advice preparation

You may be charged a Statement of Advice (SOA) preparation fee which can range between $880 and $1,100 (inclusive of GST) depending on the complexity of the advice and time spent. We will provide you with an estimated cost before commencing any work.

AND/OR

Annual fee for service may be negotiated in engagement of our services.

We charge a fee for the ongoing advice and management of your financial affairs. The ongoing service fee, up to a maximum of 1%, will be calculated as a percentage of your total investments and premiums under management.  For example, if you invest $100,000 and the fee is 0.5% then we may receive on an annual basis an ongoing service fee of $500. Fluctuations in the investment balance will impact on the total ongoing service fee charged. Reviews will be conducted on at least an annual basis.

Commission

Please note that this is the alternative to Fee for Service – not an additional cost.

Payment of fees using the commission model is broken into 2 components – upfront or initial commission payable on entry to investment and on-going commission which is paid out of your investment on either a monthly, quarterly or yearly basis.

Upfront Commission

The range of Upfront Commission PIS receives in respect of investment type financial products and risk insurance financial products are as follows:

Product Type

Range of Upfront Commission

Managed Investments

Up to 6%

Superannuation

Up to 6%

Agribusiness & Tax Effective Investments

Up to 10%

Margin Lending

Up to 3%

Annuities

Up to 6%

Risk Insurance

Up to 123.75%

For example, on a $10,000 investment into a Managed Investment the Upfront Commission received would be between $0 and $600. If the actual rate of Upfront Commission on that product is 4% PIS will receive $400 Upfront Commission in respect of the $10,000 investment and your initial investment will be reduced to $9,600. PIS will then forward to me $360.

For investment and superannuation products the Upfront Commission payment is usually deducted from the initial amount invested, whereas Upfront Commission is usually factored into the cost of insurance products. The amount of fees we receive from your investment in direct share investments will vary depending on the amount traded and the remuneration offered by the relevant share trading facility. Please refer to your SOA for specific details as to these amounts.

Ongoing Commission

The table below outlines the range of Ongoing Commission PIS may receive in respect of various types of financial products offered.

Product Type

Range of Ongoing Commission

Managed Investments

Up to 2%

Superannuation

Up to 2%

Agribusiness & Tax Effective Investments

Up to 2%

Margin Lending

Up to 2%

Annuities

Up to 2%

Risk Insurance

Up to 32%

 

By way of example, on a $10,000 investment into a Managed Investment the Ongoing Commission received annually would be between $0 and $200. If the actual rate of Ongoing Commission on that product is 1% PIS will receive $100 annually in respect of the $10,000 investment. PIS will then forward to our office $90.

The Ongoing Commission may be paid weekly, monthly, quarterly or annually depending on the product. The exact amount of Upfront and Ongoing Commission PIS and we will receive will be clearly identified in your Statement of Advice (SOA) and agreed with you prior to placement of your investments.

 

Tax & Accounting
Financial Services
Business Advice
phone 07 5436 0300   fax 07 5436 0399  email info@pwafinancial.com.au
postal address: PO Box 237 Caloundra Qld Australia 4551   ABN 43 659 242 106
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