View more on these topics

Only 13% of consumers want to pay for ongoing advice

Just 13 per cent of consumers are interested in seeking out ongoing fee-based advice, according to research from JP Morgan Asset Management.

The research, published this week, looks at the appetite among UK consumers for fee-based advice.

JP Morgan based its findings on a survey of 2,028 individuals with a gross household income of over £50,000, having previously established that a gross household income of £55,000 is the tipping point where consumers become significantly more interested in taking advice.

It found that 13 per cent of respondents are likely to seek out an ongoing fee-based service while 40 per cent are prepared to pay for task-based advice services.

More than 80 per cent of those surveyed said they would seek professional advice to some degree while only 19 per cent wanted to transact on a purely non-advised basis.

The research found interest in using an adviser peaks among individuals with a household income of £150,000 to £250,000.

It also found clients would be most willing to pay a fee to an adviser who is proactive in managing ongoing portfolio adjustments and provides regular reports and early warnings of market volatility and financial events.

Evolve Financial Planning director Jason Witcombe says: “Financial planning is quite an intangible thing but once it is explained a monthly fee will not cost a great deal more than a project fee. Once clients understand the benefits of the service, they are more open-minded about paying for ongoing advice.”

Recommended

Avalon reports £66,000 pre-tax profit

Avalon Investment Services has reported a pre-tax profit of £66,000 for the year ending 30 June, 2011 compared with the firm’s £3,702 profit in 2010. The platform’s assets under administration increased 37 per cent from £150m in 2010 to £205m in 2011. Turnover increased 23 per cent from £1.5m in 2010 to £1.9m in 2011. […]

Insider dealing couple ordered to pay £1.5m

Southwark Crown Court has ordered a former senior investment banker and his wife to repay a total of £1.5m after they were convicted of insider dealing. The court issued confiscation orders against Christian Littlewood and Angie Littlewood this week, who were ordered to pay £767,000 each. In a case brought by the FSA, the Littlewoods […]

6

Standard Life axes trail commission to SJP introducer

Standard Life has terminated its agency agreement with the IFA firm which administers the legacy assets of clients moving to St James’s Place. Policy Services takes on the legacy assets and trail commission of clients moving to SJP advisers, with the firm splitting the ongoing commission with the adviser. However, Standard says it is axing […]

City Asset Management to go restricted

City Asset Management is set to move to a restricted model post-RDR but may become independent in the future. Chief executive Nicholas Coghill says the firm is likely to follow the majority of the discretionary market and become restricted from next January. He says: “What we are leaning towards at the moment is becoming restricted, […]

Childcare - thumbnail

Three questions for employers…

The Family and Childcare Trust’s annual survey has been widely reported in the media and the two headline figures were these: the average cost of a nursery place for a child under two has risen by 33 per cent since 2010; and the costs have risen by five per cent in a single year.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. It depends what you call an ongoing fee. A monthly payment from the client’s bank account probably is difficult to sell, but a monthly fund-based deductible adviser charge is hardly any different from the present system of trail commission, so I don’t see why it should be a problem.

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com