Low-charging advisers 'face income gap post RDR'

Nicola Brittain
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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 ...

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