Fixed fees 'nine times more attractive' than percentage-based adviser charging

Quarter want to see return of commissions

Hannah Godfrey
clock • 2 min read

Consumers prefer fixed fees to percentage based charging, despite advisers' preference for the latter, research by Drewberry has found.

Half of respondents to a survey by the firm said they would prefer fixed prices for ‘standard' pieces of work, such as setting up a pension. A mere 6% of the public liked the idea of a percentage of assets-based arrangement to calculate their adviser's fees, even though this has become the prevailing model for many financial advisers in recent years. Earlier this month a survey by Adviser Home found three-fifths (60%) of advisers charged on the basis of assets under advice, a fifth (21%) had fixed fees, and 5% charged on a time-based approach - or a combination of the three. Drewbe...

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