Percentage-based charging is a 'broken model', advisers say

Charging based on assets was becoming increasingly difficult to justify in today's changing industry, when consumers are demanding more transparency on products and services, the advisers said. The flat-fee model, on the other hand, was well suited to those needs as well as being a good companion to emerging forms of advice, such as robo-advice, they claimed. Jones Hill independent financial adviser Brian Hill said: "Even though the vast majority of financial advisers offer their services on a percentage-based charge for financial advice a flat out fee should be introduced. "It has...