Advisers are publishing their fees on review website VouchedFor in an effort to be more transparent.
Research by VouchedFor for the Sunday Times shows 423 advisers, representing 263 firms, have published their charges on the site.
VouchedFor, the review site for financial and mortgage advisers, solicitors and acountants, does not publish adviser charges on their websites, nor do advisers have to publicise them although charges must be disclosed before any advice is given.
The research found adviser fees reach up to as much as 2 per cent a year.
Initial one-off fees for advice range from 0.5 per cent to 5 per cent of a client’s assets while annual fees are anywhere from zero to 2 per cent.
On average, the average initial fee was 1.72 per cent and the average annual charge was 0.69 per cent. Hourly fees range from £125 to £250, averaging £178 across those who have published fees.
When it comes to investment advice, initial fees drop the more a client invests. Someone with a portfolio of £100,000 is charged 2.06 per cent while an investor with £500,000 would pay 1.24 per cent.
Speaking to the Sunday Times, VouchedFor managing director Alex Whitson says value is key. “It’s important that consumers understand how well their chosen adviser’s service and fee structure align with their needs.”