Advisers have expressed concern at new Association of Professional Financial Advisers research showing a “worryingly low” average hourly adviser rate of £156.
The figures, compiled by NMG Consulting and published last week, show that 82 per cent of advisers have left their hourly rate unchanged since the RDR was introduced in January, while 12 per cent have increased their rate and 2 per cent have lowered it.
Most advisers charge £150 or less per hour of service, with 49 per cent charging between £101 and £150 and 15 per cent charging between £51 and £100. Just a third of advisers charge more than £150 per hour, with 26 per cent charging £151 to £200 and only 8 per cent charging £201 to £250.
Apfa director general Chris Hannant says the average £156 rate provides a “valuable benchmark” and vows to continue to fight to keep regulatory fees under control to prevent increases in the client charges.
Hudson Associates director Ian Hudson says: “I am surprised and it is worryingly low as we charge between £200 and £250. It is about perception of your own worth and also your cost bases. I have an office with lots of staff and running costs, but a lot of advisers work from home so they can charge less.”
Yellowtail Financial Planning managing director Dennis Hall says: “Advisers moving from commission to fees may not feel comfortable asking for what they really want. People are looking to see how the RDR beds in as it is still early, while hourly rates are only one charging option.”