Could coronavirus change the way advisers charge clients?

Models under scrutiny

clock
Alastair Cunningham: “The majority of the ones I’ve seen are just some permeations of a value-based charges rather than being bone fide fixed fee for one service.”
Image:

Alastair Cunningham: “The majority of the ones I’ve seen are just some permeations of a value-based charges rather than being bone fide fixed fee for one service.”

Dramatic market dips resulting from the global pandemic have seen some advice firms' revenue streams take massive hits, putting pressure on the assets under management (AUM) model. And, like in any time of crisis, advisers are questioning whether their approach is best and some are exploring different possibilities. Claire Tyrrell spoke to several advisers about their charging structures and their view on fixed fees versus percentage-based models.

Capital Asset Management IFA and chief executive Alan Smith has operated his Chartered firm on a fixed fee basis for the past five and a half years after changing from a percentage of AUM model. Smith...

To continue reading this article...

Join Professional Adviser

 

  • 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.
  • Tap into our community intelligence through our regular Pro Adviser poll.
  • 
 Be the first to hear about our events and awards programmes.

Join

 

Already a Professional Adviser member?

Login

More on Your profession

PA360 North: Advisers should enable clients to live happier, more fulfilled lives

Advice should enable clients to live 'happier, more fulfilled lives'

Incorporating the Financial Wellbeing Index

clock 09 December 2021 • 2 min read
PA360 North: Build branding on 'distinctiveness' not company name

PA360 North: Build branding on 'distinctiveness' not company name

What makes your firm different?

Jenna Brown
clock 09 December 2021 • 1 min read
Advisers, share your views on the PFS/CII deregistration 'debacle'

Advisers, share your views on the PFS/CII deregistration 'debacle'

Pro Adviser Poll

Professional Adviser
clock 09 December 2021 • 1 min read