Why advisers and clients still prefer percentage-based charging

It is just over a year since the introduction of the Retail Distribution Review (RDR) and, despite some misgivings from the regulator, a percentage based charging structure is still the preferred method among the majority of IFAs. Pre-RDR, designed to challenge the more opaque aspects of the financial services industry, some 76% of advisers predicted they would use a fee structure in which they charge as a percentage of assets. Nearly a year later, research carried out by Aviva and conducted among a much larger sample size, found that 83% were either charging a percentage of clients' ...