Only 7% of IFAs are currently employing a fee-only remuneration model, although an increasing number are now planning to move away from commission.
A survey of 500 advisers by Defaqto found 78% now use a mix of commission and fees. Of these advisers, nearly two-thirds receive less than 25% of their income through fees while only 11% earn over 50% of their income via fees.
The proportion of IFAs with a fee-only structure has only crept up marginally from 4% in 2009 to 7%.
However, 55% of those who deal in individual pension products are now planning a move to a fee-based structure, compared to 34% in 2009.
Matt Ward, wealth management consultant at Defaqto, says: "Although our survey identified an increase in the number of IFAs planning to move to fees, the detail suggests that this move is a gradual one.
"The move to a fee-based model is not straightforward for IFAs and will mean fundamental changes to their business, so it is understandable that movement in this direction will take time.
"Advisers need to start thinking about their business model and how they will ensure their remuneration structure is RDR-compliant. It is important for IFAs to identify those providers and products that will support their move to a fee-based model, and their future plans under the RDR generally."
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