The Financial Advice Fee Gap No One Talks About
- Norma Falconer
- Jun 24
- 6 min read
Updated: Jun 26
In Australia’s diverse financial advice landscape, there are many different models for financial advice fees
Each model serves a purpose, depending on the client’s needs, preferences, and circumstances.
At Think Capital, we’ve chosen to focus on a specific approach - one that’s designed for clients seeking clarity, structure, and long-term strategy.
We are a non-aligned, fee-for-advice firm.
This means:
We are not owned by or affiliated with product manufacturers.
We do not accept commissions for investment advice. We charge a financial advice fee
We do not require clients to meet a minimum investable asset threshold to engage with us.
Who We Work With
We work with individuals and families managing financial complexity - whether that’s due to life transitions, business ownership, cross-border considerations, or retirement planning.
Our clients value:
Advice that is structured, not standardised
A clear process with defined outcomes
A long-term relationship built on trust and insight
What to Expect When You Work With Us
A structured, strategic planning process
Transparent pricing
Access to a network of trusted professionals
A long-term relationship built on clarity and trust
Ready to Take the First Step?
If you are ready to explore what non-aligned advice looks like, we invite you to start with a Strategy Call.
It’s a no-obligation conversation designed to help you understand your options - and whether we’re the right fit for your needs.
📞 Book your Strategy Call today: https://calendly.com/think-capital-advice/financial-independence-strategy-call
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References
As of March 2025, there are 15,558 professionally licensed financial advisers registered with the Australian Securities and Investments Commission (ASIC) [1]. This figure includes all types of financial advisers, not just those focused on financial planning.
However, if we narrow it down specifically to the "financial planning" subsector—which excludes super fund advisers, limited licensees, and investment advisers—the number is approximately 10,457 [2].
This decline from over 26,000 advisers in 2019 is largely due to stricter professional standards introduced after the Financial Services Royal Commission, which led to many advisers exiting the industry [3].
References
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As of early 2025, the breakdown of financial planners in Australia by their alignment to product providers versus independence is as follows:
🔹 Product-Aligned vs Independent Financial Planners
Product-Aligned Advisers: Approximately 58% of financial advisers are aligned with or employed by product providers (such as super funds, insurance companies, or investment platforms). These advisers typically operate under large Australian Financial Services Licensees (AFSLs) that are owned or affiliated with financial institutions [1].
Independent or Non-Aligned Advisers: Around 42% of advisers are considered non-aligned or independent. These advisers either hold their own AFSL or work under licensees that are not owned by product manufacturers [1].
🔹 Trends and Insights
The number of non-aligned AFSLs has been growing, driven by advisers seeking greater autonomy and the ability to offer more client-centric, conflict-free advice [1].
The “insourcer” model is also on the rise—these are advisers who manage their own investment models and product selection, often using managed accounts or ETFs, and are less reliant on institutional platforms [2].
Major product-aligned networks like AMP, Insignia Financial, and Centrepoint Alliance still dominate the market, but their share is gradually declining due to regulatory pressure and reputational challenges following the Financial Services Royal Commission [3].
References
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Based on the most recent data available as of 2025, here's what we know about independent or non-aligned financial advisers in Australia—particularly those who operate under wholesale models or have minimum investable asset requirements:
🔹 Independent Financial Advisers (IFAs)
Less than 1% of all financial advisers in Australia are classified as truly independent under ASIC’s strict definition (i.e. no commissions, no asset-based fees, and no ties to product providers) [1].
This equates to fewer than 160 advisers nationwide, based on the total adviser population of ~15,558 [2].
🔹 Wholesale Advisers with Minimum Asset Requirements
While exact numbers are not publicly broken down, industry reports and adviser directories suggest that a significant proportion of independent advisers operate under wholesale client models.
These advisers typically require clients to meet the wholesale investor test under the Corporations Act—commonly:
Net assets of at least \$2.5 million, or
Gross income of at least \$250,000 per annum for the past two years.
Many of these advisers also set minimum investable asset thresholds, often ranging from \$500,000 to \$2 million, to ensure their services are economically viable and tailored to complex financial needs [3].
🔹 The Rise of “Insourcers”
A growing subset of non-aligned advisers are “insourcers”— they manage their own investment models and product selection, often using ETFs, managed accounts, or direct equities [3].
These advisers are more likely to operate under wholesale models and serve high-net-worth individuals or family offices.
References
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As of 2025, the number of fee-for-advice only, non-aligned financial advisers without minimum investable asset requirements in Australia is relatively small, but growing due to regulatory reforms and consumer demand for transparency. Here's what the data reveals:
🔹 Independent, Fee-for-Service Advisers
Fewer than 1% of all advisers (i.e., under 160 individuals) meet ASIC’s strict definition of “independent”—meaning they:
Do not receive commissions or asset-based fees,
Are not affiliated with product providers,
Operate on a fee-for-service basis only [1].
🔹 Fee-for-Service Advisers Without Minimum Asset Requirements
According to Adviser Ratings, only 7% of advisers in Australia offer services to new clients for under \$1,500, suggesting that most advisers still cater to higher-net-worth individuals [2].
While exact numbers are not published, this implies that fewer than 1,100 advisers (7% of ~15,558) offer low-cost, accessible advice—and only a fraction of these are also non-aligned and independent.
🔹 Key Characteristics of This Subset
These advisers typically:
Charge flat fees or hourly rates (e.g., \$300/hour or \$2,000 for a comprehensive plan) [3],
Do not require clients to have a minimum level of investable assets,
Focus on accessibility and transparency, often serving younger Australians, families, or those with simpler financial needs.
🔹 Why So Few?
The economics of running a compliant advice practice under ASIC’s regulations make it difficult to serve clients without asset thresholds unless technology and scale are leveraged.
Many advisers who are non-aligned still operate under wholesale models or set minimum thresholds to ensure profitability.
References
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Think Capital Advice positions itself as a non-aligned, fee-for-advice-only financial planning firm that does not require minimum investable assets to engage with clients.
Here's how it fits into the broader Australian financial advice landscape:
🔹 Business Model
Fee-for-Advice Only: Think Capital charges fixed professional fees for advice, implementation, and ongoing service. They explicitly avoid percentage-based fees or commissions, offering transparency and predictability [1].
No Minimum Asset Requirement: Their services are accessible to a wide range of clients, from those just starting out to high-net-worth individuals. This makes them stand out in a market where many advisers require minimum investable assets [1].
🔹 Independence and Licensing
Non-Aligned: Think Capital is listed with the Association of Independently Owned Financial Professionals (AIOFP), which advocates for advisers who are not institutionally owned or product-aligned[2].
Professionally Licensed: Founder Norma Falconer is licensed with ASIC and brings over 35 years of experience across banking, stockbroking, and insurance[1].
🔹 Client Focus
They serve a diverse client base including:
Business owners
Professionals (including FIFO workers and expats)
Women in transition
Pre-retirees and retirees
Their approach is values-based and strategic, focusing on financial independence, tax efficiency, and intergenerational wealth planning [1].
🔹 Summary
Think Capital Advice fits into the small but growing segment of Australian financial advisers who are:
Truly independent or non-aligned
Fee-for-service only
Accessible to clients without high asset thresholds
This positions them as a progressive, client-first firm in a landscape still dominated by product-aligned and wholesale-model advisers.
References
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