One third of consumers believe financial advice is free, including many clients who currently receive advice, research from the FSA suggests.
The regulator polled 2,026 adults last month about how people think financial advice is paid for, and found that 33 per cent of respondents thought they did not get charged for getting advice.
A further 29 per cent said advice is paid for by an upfront fee, 14 per cent said people pay a monthly or annual fee for advice, while 24 per cent said they did not know how advice was paid for.
A breakdown of respondents shows 38 per cent would never consider taking advice from a professional adviser, while 32 per cent would consider taking advice. A further 17 per cent said they currently received advice, and 13 per cent said they did not know.
Of those who currently receive financial advice, 49 per cent believed advice was free.
An FSA spokeswoman says: “Advice has never been free, but this has not always been made clear. The changes under the RDR mean people will know how much advice costs and that they can make an informed decision about whether they think it is appropriate for them.”