Vanishing trail: Fifth have moved all clients to adviser charging

clock

Just under a fifth of advisory businesses have managed to transition all their clients to a pure adviser charging model, according to a 1,000-adviser survey.

Some 18% of 963 advisers polled by Skandia in June said they had moved 100% of their business to an adviser charging basis, against the 3% recorded in a similar poll a year ago. A further 14% have almost transitioned, according to the latest figures. Since 31 December 2012, following the Retail Distribution Review (RDR), financial advisers have been required to agree charges for advice up front with their clients for retail investment business. Traditional commission was banned, though trail income on pre-RDR business remained, provided no new advice was given. Last year, the Finan...

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 Charging

Why SJP's advice review has industry-wide consequences

Why SJP's advice review has industry-wide consequences

Why SJP's move to set aside £426m affects us all

Roderic Rennison
clock 04 March 2024 • 2 min read
Client charging structures: Taking a different approach

Client charging structures: Taking a different approach

Firms not increasing fees are 'effectively accepting lower profits'

Ben Peele
clock 11 October 2023 • 4 min read

Quarter of advisers saw 10%-plus pay rise after adopting DFM model

One-quarter of financial advisers have seen a pay rise greater than 10% after adopting the use of a discretionary fund manager (DFM), research for Rathbones undertaken by CoreData has suggested.

Tom Ellis
clock 04 October 2018 • 1 min read