A number of financial advisory groups are more concerned about protecting their margins than being transparent with clients over the cost of advice, a financial planning director has said.
Centric Wealth director of financial planning Greg Dunger said there were a number of groups looking at ways to protect their margins instead of being open with their clients.
"A number of groups are already looking at ways to protect their margins whereas we are more open in saying this is the cost of advice, this is the cost of investing, this is the cost of transactions in terms of doing share trades or whatever it may be," Dunger said.
"What we're more conscious of in terms of making sure that our value proposition and the services that we provide through advisers is that they are value added the whole way through the whole process and really having an adviser is really the centre of the clients' universe."
He said advisers should be open and transparent and should be able to talk with clients in terms of fees and the total cost of advice to the client.
"That's really the focus of what I have been working with planners on and advisers to be able to say there are different costs across platforms, brokerage, et cetera, let's ensure that clients fully understand what the total cost of doing business is," he said.
"That starts with MERs (management expense ratios), going through to the administration, platform fees and also the cost of advice."
