Australians are too focused on whether advice fees are reasonable rather than whether the advice suits their financial circumstances and issues.
While clients are now highly fee-conscious, choosing an adviser based on price is like "putting the cart before the horse", Strategic Consulting and Training (SCAT) managing director Jim Stackpool said.
London-based consumer campaigner Which? found huge variations in independent financial adviser fees across the UK, with one quoting £2450 ($3650) more than the cheaper alternative to transfer money into a stakeholder pension.
Which? believes an adviser rate guide and fees published on websites will help people make a more informed decision as well as what is a reasonable amount to pay.
Stackpool said the industry was so fixated on product, clients were often forced to consider the price of the product before they determined what they need.
"What's lacking from the debate is some type of conversation around what exactly the client is after and it's hard to say, therefore, that [fees] are comparable because it's not easily comparable," he said.
"We can get out of pain by taking a cheap aspirin but surgery may be needed to actually fix the cause."
Stackpool said an adviser rate guide should not be introduced in Australia. However, fees should absolutely be included in financial services guides.
"As the delivery of advice really matures and people start to understand it's not just meat and potatoes but other things that go into forming a relationship year in and year out, that will add value to the client," he said.
"That is sometimes forgotten or missed, so conclusions are jumped to about value for money when it's not put into perspective."
CHOICE director, campaigns and communication Christopher Zinn said fees should be much more available and transparent as the industry moves to a fee-for-service model.
"We want more people to use financial advisers and derive the value from using financial advice [so] for that to happen, they've got to have a sense of the direct cost and also be aware of what the value is to them," Zinn said.
"An adviser fee guide or anything which gives people some transparency to the prices of the services is great. You can get quotes from orthopaedic surgeons. Why shouldn't you be able to get guides from financial advisers as well?"
He said prices should be available online as that's where people search as a starting point.
