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

Friday Night Takeaway: It's the return of the banks

Friday Night Takeaway: It's the return of the banks

The news editor's Friday Night Takeaway from 10 July

Isabel Baxter
clock 10 July 2026 • 3 min read
Carla Brown on PFS/CII relationship reset and how chartered status is 'essential'

Carla Brown on PFS/CII relationship reset and how chartered status is 'essential'

PFS president and chair joins Professional Adviser in the studio

Professional Adviser
clock 10 July 2026 • 1 min read
FCA spotlights vulnerability in latest Consumer Duty review

FCA spotlights vulnerability in latest Consumer Duty review

Treatment of vulnerable clients still an area of improvement for firms

Sophia Panayi
clock 10 July 2026 • 2 min read