In a statement, Centrepoint said the fee structure would “break new ground in the Australian market” by offering more flexibility to the group’s advisers at a time when part-time work was becoming increasingly popular.
Roy Morgan statistics indicated 4.3 million Australian employees currently work on a part-time basis.
“There has been a reluctance to offer reductions in fees for advisers whose personal circumstances suit reduced working hours,” Centrepoint group executive of advice Paul Cullen said.
“However, financial advice is no different to any other occupation and advisers should be entitled to be supported by their licensee if they require flexible working arrangements to balance work and family commitments.”
The group said the new fee model would be available to firms with more than one adviser, with variable costs such as tech support able to be prorated according to the number of hours worked, and dealer fees able to be frozen for those taking parental leave.
“We believe that offering flexibility around fees will not only enable greater diversity in the advice industry but will also provide more options for those firms who may require advice support on a part-time basis,” Mr Cullen said.
He added that it was hoped the new arrangement would improve the accessibility of advice as a career choice, given that working parents were increasingly demanding part-time opportunities.
I can’t see a profitable financial case for a licensee who isn’t a product provider. Why are the bigger ones wooing more advisers through their fee structures – more and more discounts?