A new survey by Which? shows that, despite the requirements for UK financial advisers to be clear upfront about their charges, many of them are not. More than half of the advisers surveyed failed to say how much they charged before meeting the customer. The way they charge clients can also be confusing, too: fees ranging from as low as 0.5% up to an eye-watering 5%; hourly rates ranging from £75 to £400/hour; and a wide range of fixed one-off fees. Which? says financial advisers should be compelled to reveal their charges online; but until then, how should investors decide which adviser to entrust with their money?
I remember seeing that survey by Which and absolutely agreeing that fees should be clear and available up front. As a consumer, I don't want to have to meet with every professional I'm thinking about working with, just to get an idea of their charges. I set up my own financial planning business last year. The fees are up front, on the website, I give clear examples about how much they could be for different situations and they're not based on a percentage of the money invested. I really support the material you produce and am sure it's making a difference.