A recent survey from the Association of Independent Financial advisers has found that more and more people are choosing to pay fees for financial advice, rather than through the traditional commission route. The research showed that six months after their first survey on depolarisation, there has been an increase from 12% to 18% in the number of people who are now opting to pay by fees.
The survey also showed that the majority of business carried out across investments, protection and mortgages is being carried out on an independent basis. Nine out of ten advisers said they looked at the whole of the market compared with 72% for the last survey, while 87% offered independent advice on protection, and 69% still looked at the whole of the market for mortgages.
The research also found that the Financial Services Authority's goal of making the cost of advice clearer for clients was partially being achieved. Sixteen per cent of independent financial advisers who took part in the survey said that their clients had mentioned other companies menu's or quoted other companies commission rates or fees, but around 75% thought that only 25% of clients were actually making use of them.
Our view
100% of s clients are fee based. Many get better deals on their financial contracts by dealing on a fee basis. Of course, some clients cannot afford this and many still use a commission. If you would like an explanantion of fees v commissions - book a call back from us.