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

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Trian and General Catalyst to purchase Janus Henderson for $7.4bn

Will continue to be led by current management team

Patrick Brusnahan
clock 23 December 2025 • 2 min read
2025 reflections: How strong companies trumped politics

2025 reflections: How strong companies trumped politics

Fears of an AI market bubble persist

Ryan Hughes
clock 23 December 2025 • 3 min read
What does 2026 hold for investment?

What does 2026 hold for investment?

‘The disruptors of yesterday are now the establishment’

Jen Frost
clock 17 December 2025 • 3 min read