Blow to fixed fee model ahead of adviser charging rules

Scott Sinclair
clock

The majority of consumers will only be prepared to pay for investment advice as a percentage of the amount invested and will not part with more than 3% as an initial fee, industry figures say.

Research conducted by 2plan Wealth Management suggests fixed fee and hourly rate charging, which some firms have already adopted as a model, will prove unpopular with most consumers in a post-RDR world. Fee-based advisers say the RDR and its demands for total advice transparency will place "old school" advisers who have been charging upward of 5% for their advice in difficulty. An FSA policy statement - effectively its final rules - on adviser charging is due before the end of the month and concerns remain advisers are leaving it late to transition their business models in time for th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Your profession

Hitting milestones later in life could impact when people seek advice

Hitting milestones later in life could impact when people seek advice

People will likely be seeking financial advice later

Laura Suter
clock 19 April 2024 • 3 min read
Regulatory pressures taking a toll on industry stress levels

Regulatory pressures taking a toll on industry stress levels

'Regulatory pressures are the first thing on my mind’

Sahar Nazir
clock 19 April 2024 • 1 min read
Advisers blast FCA funding requirement of £755m 'inexorable'

Advisers blast FCA funding requirement of £755m 'inexorable'

‘I don’t really know what value I’m getting from the FCA – if any’

Hope Coumbe
clock 19 April 2024 • 2 min read