The cost of running a one-person FAP revealed

Katrina Shanks

Compliance firm Strategi said it was likely that it might cost about $10,000 to establish a FAP with one to three advisers, and then another $10,000 a year to operate.

That includes adviser time at a rate of $200 per hour.

Larger FAPs would be more expensive to set up, at about $15,000 to $18,000, it said.

Businesses would need to think about the size of their business, the service offering they wanted to give clients, their plans for growth, how they would handle the branding of advisers within their FAP and the structure.