Sue Viskovic
Fixed advice fees have replaced models that include asset-based fees as the most common pricing model for ongoing service, reflecting the profession’s increasing focus on non-investment related matters such as guiding clients through challenging situations and acting as a sounding board to help them avoid costly mistakes, according to new research by Vital Business Partners (VBP).
The 2026 VBP Advice Fee Benchmarking Report found 49 per cent of advice firms charge fixed fees while 38 per cent charge a combination of fixed and percentage-based fees. Only 10 per cent charge asset-based fees, down from 18 per cent in 2023.
The data highlights the demise of percentage-based fees as an accurate measure of the value delivered by the advice profession, with pricing decisions increasingly based on scope of work and complexity.
The report also found that only 38 per cent of advice firms factor a client’s investable assets into their pricing methodology. Almost a quarter did not consider investable assets at all and 39 per cent only consider a client’s wealth if there is considerable complexity such as multiple entities, trust structures and tax considerations.
Sue Viskovic, Head of Consulting at VBP, said the introduction of new ongoing fee arrangement (OFA) rules in 2025 placed greater onus on advisers to continuously demonstrate value and earn the right to continue the relationship.
“Advice firms have been required to think more carefully than ever about how they price their services,” she said.
“The challenge is not simply determining how much clients will pay but finding the right balance between charging enough to build a sustainable business while delivering genuine value to the clients.”
The 2026 VBP Advice Fee Benchmarking Report gathered data and insights from 143 financial advice businesses nationally, representing approximately 500 financial advisers.
Other keys findings included:
- Over 60 per cent of advice firms charge a single fee that covers the initial meeting, advice generation and implementation, 31 per cent separate advice and implementation, and 6 per cent charge a monthly retainer.
- Firms onboarded an average of 15 new clients per adviser in the last 12 months.
- Only 5 per cent of advice firms pay referral fees to external organisations.
Viskovic said the report captured several emerging themes including significant fee variation across the profession, even for relatively similar client scenarios; a greater focus on targeted specialisation; and the profession’s increasing role in removing financial and non-financial complexity from people’s lives.
“There is no right or wrong business model or pricing methodology, it depends on a range of factors, including a firm’s target market, service proposition, operating model, cost structure, workflow design and desired profitability,” she said.
“We frequently encounter firms that have not reviewed their pricing for many years and continue to charge fees based on historical precedent rather than current costs, client expectations or the value they deliver. This benchmarking report aims to provide valuable context to help advisers understand where their fees sit relative to other firms and challenge assumptions that may have developed over time.”