Cost of compliance impeding on advice affordability: expert

Yasmine Raso

Senior Journalist, Financial Newswire

23 February 2026

A perfect storm of impending legislative reform, client demands for transparency, and increasing compliance requirements have left financial advisers to navigate the fine line between clear and consistent pricing, delivering affordable advice and managing the rising costs of compliance, according to new commentary.

Julie Matheson, founder of mentoring business Finwise Leadership and former director of the Financial Planning Association of Australia (FPA) prior to its merger to become the Financial Advice Association Australia (FAAA), said the longstanding issues of inconsistent quoting, fees and variable pricing structures have created further “friction” as Australians become more financially literate and engaged with securing their financial futures.

Matheson has urged financial advisers to rethink and streamline their pricing structures, as the government’s proposed reforms targeting superannuation advice only exacerbate existing pressures on advice affordability and compliance costs.

“The government is calling for capped fees and affordability, while layering on more compliance that increases delivery costs. Advisers are navigating regulatory precision while trying to remain commercially viable.

“Unbundled fees are not only more compliant, they are more client-friendly. Itemising services and clearly identifying deductible components strengthens both ethics and client outcomes.”

At the same time as these reforms have been proposed, the advice sector continues to face a talent shortage as experienced advisers exit the workforce and newer advisers struggle through complex pricing discussions.

“This often results in internal inconsistencies. One adviser may quote $3,500 for a review, another $1,200 for similar work, without clear justification. Beyond client confusion, this weakens pricing integrity and firm-wide value positioning,” Matheson said.

“Pricing is no longer just operational. It is strategic. When clients understand the scope, see how fees are structured and feel part of the process, trust strengthens. Without that clarity, conversion slows and growth stalls.

“More firms are now rethinking pricing methodology not simply to manage compliance risk, but to build credibility and scale sustainably.

“The advisers who succeed in 2026 and beyond will not be the cheapest. They will be the clearest.”

Matheson will also be co-hosting a webinar on Thursday 5 March to address the challenges advisers face during pricing conversations and how to better deliver ‘ethical, transparent and team-wide pricing’.