Financial Advice Fees Do You Get What You Pay For

Published / Last Updated on 24/01/2020

FCA's PROD and % charges  Product Intervention and Governance Sourcebook requires advisers to understand their client bank and ensure they design investment solutions and advisory services and fee structure that work for their clients and different types of clients. 

These rules started in January 2019 to force financial firms prove the products they recommend deliver good outcomes, meet the needs of an identifiable target market and are sold to the right clients.

This also includes adviser fees and tha fact that many advisers are still charging a % of your portfolio both upfront and ongoing.  E.g. If you have £500,000 in pensions and investment funds and you adviser is charging you 1% pa, that's £5,000 pa - they must be able to justify that works done for clients at this fee level justify that fee.  In most cases it means that wealthier client fees are cross subsidising  less wealthy clients.


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