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Nearly a third of advisers earn more than £100k

Fund manager pay 620

Nearly a third of advisers are paid more than £100,000, Money Marketing research suggests.

66 of the 474 advisers who responded to our poll on how advisers were paid said their average annual remuneration was more than £150,000 year

That represented just under 14 per cent of the sample. A further 17 per cent were paid between £100,000 and £149,999.

At the other end of the scale, around 6 per cent of all advisers say they earned less than £30,000 and a further 9 per cent said they earned less than £40,000.

Independent advisers appear to be paid slightly more than their restricted counterparts; in total just over 32 per cent of independent advisers were paid £100,000 or more, compared to 18 per cent of the restricted adviser population.

Independent advisers were paid on average £89,522, while restricted advisers were paid on average £75,489.

For paraplanners, average remuneration drops to £40,649.

For advisers in firms of between two and five advisers, average remuneration was £86,105.

For firms with between five and 20 advisers, the average remuneration was £88,516.95

Performance pays

30 per cent of all advisers said at least half of their remuneration came from hitting performance-related goals, for example client acquisition, revenue targets or client satisfaction.

However, 45 per cent said they only earned up to 5 per cent of their salary on a performance basis.

28 per cent said that more than half of their remuneration took the form of dividend payments, but 64 per cent said they only paid themselves between 0 and 5 per cent of their salary in dividends.

Roughly speaking, the distribution of performance and dividend payments was the same across the independent and restricted advisers surveyed.

On an optimistic note, 83 per cent of all advisers expect their remuneration to increase over the next five years.

In total, Money Marketing’s survey covered 498 advisers, 405 of which were independent.

22 per cent worked as a one-man band, 39 per cent worked in a firm with between 2 and 5 advisers, around a quarter had between 5 and 20 advisers in their firm, and 13 per cent had over 20.

This article is the latest in Money Marketing’s series on adviser charges and pay. Look out for a full report on the results of the Money Marketing adviser remuneration survey in next week’s magazine.

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Comments

There are 33 comments at the moment, we would love to hear your opinion too.

  1. But is the £89,522 the mean, median or mode? Big difference.

  2. Sorry don’t believe, this story, the Author has the correct name, Justin Cash, but I feel the Survey results are false or some of this story is made up!

    • I agree. As far as the self employed are concerned is this before expenses? £100 or £150k is soon whittled down if you start to account for FCA, PII, FSCS, Rent, Phone, Paraplanner, IT and all the rest. If employed they need to bring in over (at least) £375k in fee income to earn £150k. Possible for the usurious charges of SJP, but for normal competitive firms this is a big ask.

      I think the journalist and the research in this case has been (to be polite) very naive.

      • Not even close Harry, that would mean the adviser earning less than 50% of their fee income. That may be the case on lower fee levels but not at the levels required to earn £150k. I’d say the adviser would be doing between £200-250k fee income in order to earn £150k plus, they are on less than that they need to look for a new role.

        I am a one man adviser business in the Midlands and I completed the survey. Based on others I speak too I’d say the results are about right certainly I am right in the ball park of these numbers.

        • Darren I can certainly tell you from my knowledge now gained as a freelance consultant that many employed advisers would be ecstatic if they could get 50% of what the brought in.

          You sate that you are in the ball park but as a one man band you don’t say if this gross (before all expenses) or net. What always counts is what you finally pocket.

  3. based on what level of business production and employed or self employed?

  4. and the point behind this survey is what?

  5. Ya I wish – Try surveying non private bank advisers outside the of City of London and you will see a very different data set

  6. In what line of business, and are they London based..? This does not strike me as a robust survey

  7. I wonder if they are talking ‘turnover’ (i.e. earnings generated for their business) rather than income and dividends earned personally – I agree that the figures seem on the high side (and that’s speaking with 6 years experience at a national IFA back in the days of commission paying GPPs with lots of peers to compare against).

  8. Firstly is this gross or net
    Second the sample is biased. ask the question – who are going to declare their earnings? and be truthful about it?

  9. It was only last month FT Adviser reported “3 out of 10 advisers earn more than £1m” now MM say nearly a third earn £100k. I wonder what next…..actually I do…we’ll soon be releasing our annual salary census for 2017 so if you want a copy, please drop me a line james@bwd-search.co.uk

    • That FTAd story was about advice *firms*. Also was on the back of Aviva research, not a proprietary reader survey targeting individual advisers by status and firm size. Would love to see your results James if you did want to ping them over to justin.cash@centaurmedia.com once it’s ready.

      Cheers,

      Justin

  10. I own and run a practice, not in London but in Cumbria, the survey is in line with what I pay advisers and paraplanners, so not a surprise to myself, but nice to have confirmation that I’m in the correct ballpark in regard to remuneration.

  11. You could probably say the same about accountants and solicitors.

    I know RI’s who provide way more value to their clients than some in the aforementioned professions.

    If a client doesn’t perceive the service to be value for money then they will go elsewhere. Each individuals perception is different.

  12. This survey will go down well with consumers as they already think that financial advisers are overpaid for what they do. I think that the headline figures need to be placed in some context for them to make any real sense.

  13. I get paid £25k as a protection adviser in Norfolk, I am diploma qualified, but I do have a very Norfolk accent so I feel that hinders my career, I also find it hard to control the volume of my voice when on the telephone. I have been known to drop my colleagues in it, do others here feel that is the correct salary for me?

    • Le Serpent, that’s interesting. I feel that i am very much underpaid. I am also diploma qualified and feel my salary of £15k is not in line with the industry standard. Then again, i spend half my time hungover.

  14. I dunt believe it

  15. I’m a apprentice and I earn 13k le serpent so u r pretty lucky

  16. No more than you deserve by the looks of it

  17. I feel this salary is correct, I earn 120k as a senior lead technical DB transfer adviser paraplanner extraordinaire but I feel I deserve it because of all the knowledge I’ve accumulated over the years. I sit on the pensions regulator website like its Facebook I enjoy it so much. the buzz of completing a TVAS on a cold Thursday morning puts chills down my spine, this is what I dreamt of as a child, bringing in the big bucks, doing what I love, seeing the look on someone’s face as you say they can transfer their existing defined benefit pension of over £1 mil to a shiney new SIPP.

  18. i’ll give you a job le serpent, you deserve more than that

  19. I pay £6 a day for parking

  20. I cant disclose where I work I’m afraid

  21. The best things in life are free
    But you can keep them for the birds and bees
    Now give me money
    That’s what I want
    That’s what I want, yeah
    That’s what I want

  22. Gedgetron, would you like to come and work with me? I will provide free parking and I make the occasional cup of tea.

  23. I blame BREXIT

  24. Never count another planner’s money.

  25. Another MM waste of ink. 100% of senior managers employed in all businesses earn more than. £100k

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