By Werner Gerber, CFA® | Founder, ClearGauge Wealth
ClearGauge Wealth (Pty) Ltd is an Authorised Financial Services Provider (FSP No. 55826). | Reviewed 23 August 2026
Quick Answer
There is no single correct price for financial advice in South Africa. The appropriate cost depends on scope, complexity, responsibility and whether the work is once-off or ongoing. Advice may be charged as a fixed fee, hourly fee, percentage of assets, commission or a combination. Compare the total cost in rands and percentages, not the adviser fee in isolation.
A fair fee should be understandable before you commit, proportionate to the work and supported by a written service description. Ask what is included, what can increase the fee, which product and platform costs sit outside it, and how you can end the service. The cheapest proposal is not automatically good value, and a high fee is not proof of comprehensive advice.
Visual Summary
| Charging method | Useful comparison | Question to ask |
| Fixed fee | Defined project or review | What deliverables and revisions are included? |
| Hourly fee | Time-based specialist work | What is the expected range of hours and who performs them? |
| Percentage of assets | Ongoing advice linked to portfolio value | What is the rand cost now, and how does it change as assets grow? |
| Commission | Remuneration linked to a transaction or product | Who pays it, how much is it and what conflict can it create? |
| Combination | Advice, implementation and ongoing work priced differently | What is the complete annual and once-off cost stack? |
Cost framework for education only. A quoted fee must be assessed against the actual mandate and current disclosure documents.
Decision Framework
Start by separating the price of advice from the cost of financial products and implementation. A client can pay an advice fee, platform fee, investment-management fee, fund expenses, transaction costs and product charges at the same time. They may be collected differently, which can make the total difficult to see.
1. Define the Service Being Priced
Ask whether the fee covers analysis, a written plan, product recommendations, implementation, meetings, administration, tax coordination, estate-planning coordination and ongoing monitoring. List exclusions and work that will be billed separately.
Two providers cannot be compared sensibly until their deliverables and responsibilities are comparable.
2. Convert Every Percentage to Rands
A percentage can appear small while producing a material annual amount. Multiply the rate by the relevant asset value, then test how the amount changes if the portfolio grows or falls. Ask whether there is a minimum, tier, cap or threshold.
Also establish whether VAT is included and when the fee is collected. Do not assume that a deduction from an investment account is costless because no invoice reaches your bank account.
3. Add the Full Cost Stack
Combine advice, platform, product, investment-management and transaction costs. Ask whether any cost is embedded, rebated or paid by another party. The written disclosure should allow you to see both once-off and recurring costs.
4. Match Price to Complexity and Responsibility
A narrow investment review should not be priced as if it includes retirement, tax, estate, insurance and family-governance work. Equally, complex coordination can involve substantial professional time even when no product is implemented.
Consider the consequence of the decisions, the amount of analysis, the expertise required and the accountability retained after the recommendation.
5. Test Ongoing Value
For recurring fees, ask what happens every year. A review service should identify the monitoring, meetings, updates and decisions included. If the service becomes mainly administration, the mandate and fee may need to be reconsidered.
6. Understand Termination and Extra Charges
Ask how notice works, which fees stop immediately, what records are provided and whether transfer or implementation charges apply. A clear fee arrangement should not depend on discovering important costs only when you leave.
Key Concepts
Price and Cost Are Different
Price is what the adviser charges. Cost includes every amount that reduces your wealth or is paid to deliver the arrangement. Both matter.
Value Is Not Investment Outperformance
Good advice may improve decisions, coordination, tax awareness, risk management and behaviour. It should not be sold as a promise to beat markets or guarantee returns.
Percentage Fees Scale Automatically
When an asset-based fee is used, the rand amount changes with the portfolio. Ask whether the service workload scales in the same way and whether tiers or caps apply.
Worked Example
Assume an investor has R5 million under advice and a quoted ongoing advice fee of 0.75% a year. The illustration produces R37,500 a year before VAT if applicable. If platform and investment costs total a further 0.65%, the combined illustrated annual cost is 1.40%, or R70,000 on R5 million, before transaction or other charges.
The calculation does not decide whether the fee is appropriate. The investor still needs to compare scope, service, conflicts, tiers and alternatives. The value of converting percentages to rands is that the discussion becomes concrete.
Reality Check
- A low headline fee may exclude planning or ongoing work.
- A high fee may include unnecessary services or expensive products.
- Commission is still a cost or incentive even when the client does not pay it by separate invoice.
- Taxes, exit charges and lost guarantees can make changing arrangements expensive.
- Published fees can change; obtain the current written schedule before acting.
Common Mistakes
Comparing Percentages Without Rand Amounts
Small percentage differences can become meaningful over time. Always show the annual rand amount at the current asset value and at plausible future values.
Ignoring Product and Platform Costs
The advice fee may be only one layer. Ask for a complete, written cost picture and identify which party receives each amount.
Paying an Ongoing Fee for a Once-Off Need
If the work is genuinely finite, ask whether a project fee is available. Do not assume a recurring mandate is necessary solely because implementation is involved.
What This Framework Does Not Decide
This framework does not set a market price, judge a particular fee or recommend a charging method. It does not calculate the tax effect of paying fees from an investment. It helps a client compare the full cost and service on a consistent basis.
Frequently Asked Questions
Is a percentage-based advice fee always expensive?
No. The answer depends on the percentage, asset value, tiers or caps, scope and alternatives. Convert the percentage to rands and compare the recurring service.
Should financial advice be free?
Advice has a cost even when no separate invoice is visible. Remuneration may be embedded in a product, paid as commission or collected through an account. Ask who pays, who receives and how much.
Can I negotiate financial-advice fees?
You can ask whether scope, charging method, tiers or caps can be adjusted. The important result is a written agreement that accurately describes the work and cost.
Where can I see ClearGauge Wealth’s fees?
ClearGauge publishes its current approach on the Fees page. Confirm the applicable tier, scope and fee in writing before work begins.
Financial Clarity Review
A Financial Clarity Review is a defined once-off engagement that can help clarify the financial questions and scope before you decide whether ongoing advice is necessary. Current ClearGauge pricing and conditions are published separately on the Fees page.
Continue Exploring
Explore the ClearGauge Wealth library: Choosing a Financial Adviser
Related ClearGauge questions:
- What Questions Should I Ask a Financial Adviser Before Appointing Them?
- How Can I Tell Whether a Financial Adviser Is Truly Independent?
- When Should I Consider Changing My Financial Adviser?
Sources and Further Reading
Primary regulatory sources were checked on 23 August 2026. Recheck current law, licence status, costs and product terms before acting.
- South African Government: FAIS General Code of Conduct
- FSCA: General Code of Conduct changes — conflicts and disclosures
- FSB Retail Distribution Review (2014 consultation paper; policy background)
Important Disclosure
This article is provided for general educational and informational purposes only and does not constitute financial, investment, tax or legal advice. The examples and illustrations are based on assumptions that may not apply to your circumstances and are not guarantees of future outcomes. Before making a financial decision, consider obtaining advice appropriate to your objectives, financial situation and needs.