How much does the true cost of advice actually cost to deliver? It’s the perennial question that has dogged the financial advice sector for decades, but it’s a question that market research consultancy firm, CoreData, is seeking to answer as part of a research initiative for the Quality of Advice Review.

The research is being conducted for the Joint Associations Working Group (JAWG), which was formed to provide a united industry response to Treasury on the Quality of Advice Review. JAWG consists of 12 industry groups – which among others include the FPA, FSC, AFA, and the Boutique Financial Planning Principals Association.

Speaking to Money & Life, the Global CEO of CoreData, Andrew Inwood, confirmed CoreData’s research was focused on identifying the true cost of advice, including the overall cost borne by financial planners to service their clients.

“The foundation of this research is set on uncovering three key elements: what are the costs of advice; what are the components of these costs; and how much of these costs are carried by the financial planner,” says Andrew.

According to Andrew, the costs of advice are many. These range from: the costs of licensing, including compliance and governance; fixed operational costs, such as staff salaries; technology costs, including platforms and software; through to a multitude of ancillary costs, like training, education, marketing, and the actual costs involved in servicing a client.