VouchedFor data reveals 'outrageous' 5% initial advice charges

New 'fee' feature

Hannah Godfrey
clock • 3 min read

Some advice businesses are charging as much as 5% for their initial fees, according to data compiled by advice comparison site VouchedFor.

The comparison site has recently allowed advisers to specify whether they charge an hourly rate, fixed fee, percentage of assets or a combination of all three. Within a week of the feature being launched, some 423 advisers had published their full fee breakdowns for a range of different portfolio sizes on the website. Of those, six advisers recorded charging a 5% initial fee and 12 said they charged 4%. VouchedFor CEO and founder Adam Price said this sort of charging was usually for clients in the lowest wealth band. Most advisers on the website do not take on individuals below a cert...

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