Surprising research from RJ Temple suggests two in five people would expect to pay fees for the serv...
Surprising research from RJ Temple suggests two in five people would expect to pay fees for the services of an independent financial adviser.
Less than half again (17%) of the 671 people questioned believe the adviser would be remunerated by commission.
Worse still, more than one in 10 people believe advice would be entirely free, even though IFAs have been disclosing commission for several years.
Research found that:
*15% would expect to pay a fee for a consultation;
*11% would expect to pay a fee if they took up any products;
* 7% would expect to pay a fee if given recommendations;
* 4% would expect to pay a fee upfront, but to get it back if they made an investment(four answers=37%)
* 17% thought there would be no fee, but the adviser would get commission on any products taken out.
Liz Walkington, communications manager of RJ Temple, says consumers should know what the options are.
"The idea of paying a fee can be very daunting, particularly to smaller investors, and as a result many may miss out on the benefits of taking advice. But it is almost equally worrying that 11% of investors think an IFA's advice is free, as then it may not be valued."
The lack of knowledge is greatest at the two ends of the age spectrum. Almost half of those under 35 would expect to be charged a fee, while only 9% of those over 65 thought commission would apply in place of fees.
Liz Walkington added: "There has been much debate on the relative merits of fees and commission, but it is more important that clients should know they have a choice, how much it will cost them and that, whichever way an IFA is paid, he is providing a professional service."
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