Low-charging advisers 'face income gap post RDR'

Nicola Brittain
clock

Almost a quarter of UK advisers who charge £100 or less for their services face a 40% drop in income from 1 January next year as rules outlawing the payment of commissions to advisers come into force, research suggests.

Some 23.5% of advisers in this bracket derive an average of 41.7% of their income from initial commissions on saving and investment products. The same group only receive 30% of their income from fees. The study by research group CoreData was based on responses from 1,126 financial advisers. Advisers who charge more than £200 per hour will be better off as they source 56.3% of their income from fees and just 24.8% from initial commissions, according to findings published in the Adviser Fees and Business Models report. The 40% of advisers who charge between £101 and £150 per hour ...

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 Investment

Trick or treat? The UK and global economy face their Halloween ghosts

Trick or treat? The UK and global economy face their Halloween ghosts

‘Wealth managers and market professionals are tiptoeing past economic graveyards’

Stephen Jones
clock 31 October 2025 • 4 min read
Why investors need to think about emerging markets a little differently

Why investors need to think about emerging markets a little differently

'Emerging markets are starting to look eerily similar to developed'

James Flintoft
clock 29 October 2025 • 3 min read
Watch PA's Working Lunch with Baillie Gifford: Acting your age – when growing up pays off

Watch PA's Working Lunch with Baillie Gifford: Acting your age – when growing up pays off

Catch up on the discussion

Professional Adviser
clock 29 October 2025 • 1 min read