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What is a fair and reasonable supervision fee?

Under Clause 12 of the Code, a supervisor must ensure that any fees charged are fair and reasonable in the circumstances.

Supervisors who breach this requirement are at risk of a complaint being made to the Authority.

As with other fees charged, supervision fees need to be justifiable.
Many new advisers wonder whether supervision fees should be charged on a percentage or at an hourly rate. There is no right or wrong answer to that question and both approaches are taken.

Supervision agreements should be very clear on what supervision fees will be charged:

Here are some examples of considerations that may be taken into account when setting a supervision fee, or assessing whether one is fair and reasonable:

Note that not all supervisors charge for supervision on the basis that they want to give back to the profession; it is not a requirement to charge.