Clients complain about adviser fees

In a recent case, a couple wanted to reduce the amount they paid for their personal insurance. They were phoned by an adviser offering to help them and were told there would be no charge for a meeting.

The adviser prepared a detailed report with recommendations for changes to their insurance arrangements.  Eventually, the clients decided not to go ahead. They were then invoiced $450 plus GST, which they disputed.

The adviser said the clients should have been aware that there was a clause in his company’ scope of service and engagement agreement that said a fee could be charged if no business was transacted. The couple had signed a copy of the disclosure statement.

The adviser felt that in view of the amount of work he had done, he was entitled to make the charge.