Adviser limits fees

Monday, June 25th 2018, 8:01PM 4 Comments

Financial adviser Alistair Bean is guaranteeing his investment portfolio clients no fee increases for life.

He charges between 1% and 2% of the amount clients invest.

Bean said while fund manager fees, brokerage fees and admin fees were still charged by third parties, he wanted to restrict was his company was charging.

The fee guarantee covers implementation, additional funds and ongoing monitoring.

Bean was the first AFA to be permitted to offer personalised DIMS.

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Comments from our readers

On 26 June 2018 at 5:03 pm globug said:

Good to know he is catching up with other advisers. There are advisers that cap the fees their clients pay, or reduce the fees their clients pay - so that the fees reflect the actual work being done for the client - and not continually gouging fees as asset values on aggressive portfolios rise.

On 28 June 2018 at 9:34 am smitty said:

Devil is in the detail I think, unless I am mistaken, his guarantee (which by the way is spelt wrong on his Secondary Disclosure) is that the fee of 1.25% + GST won't increase, if the funds under advice increase, then the actual dollar amount charge will increase as well (naturally).It also looks to be a flat fee, so if you had $5 million under advice with Mr Bean, then you will also pay 1.25%, which when looked across the market is very expensive... Perhaps Mr Bean should have reduced his % charged, rather than claim to cap a very expensive % fee. Happy to be proven wrong.

On 28 June 2018 at 11:22 am Barry Read said:

Smitty you are right, there is no limit on the fees, the more you invest the more you pay...potentially misleading to state a limit in my opinion. The fee isn't limited the rate to calculate the fee is limited.

On 29 June 2018 at 10:19 am Davet said:

Can anyone tell me how that type of fee is different from a commission? I would think a fee is either a fixed price arrangement or charge for hours worked?

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