The advice industry could see a seismic shift in the way it charges clients as a result of recent regulatory requirements, moving away from purely percentage-based to fixed or hybrid models, industry experts say.
Speaking at a Schroders breakfast this morning, lang cat consulting director Mike Barrett noted the emphasis on fee structures was implicit in yesterday's Dear CEO letter, which would put pressure on advisers to justify their costs. He said the Financial Conduct Authority (FCA) letter called for the industry to be more transparent, aligning with its Product Intervention and Product Governance sourcebook (PROD) rules. "I don't think advisers understand the cost of delivering their services… (and) I don't think we see enough variance and creativity in adviser charging structures, they'...
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