Blow to fixed fee model ahead of adviser charging rules

Scott Sinclair
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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...

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