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Consumers wants fees but not at present rates

Consumers are willing to pay fees for financial advice but the amount they expect to pay is out of step with what the market charges, according to res-earch from the FSA.

The survey of 50 individuals found that an hourly rate of £70 is considered fair, which is at odds with the £100-£200 that many IFAs charge.

FSA head of conduct of business standards David Severn questioned whether there was any way the regulator could encourage the move towards fees.

The survey suggests there is also no evidence that prov-ider panels, used by many networks and national IFAs, result in bias among advisers.

There are a core number of providers which account for a significant volume of IFA business, regardless of whether a panel is used.

Manager (packaged products) Brenda Gibson said: “The majority of people said they would prefer to pay fees and would be willing to do so. Fees would only be contemplated in the independent sector.”

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