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Our survey shows 80% of public will not Pay fees

Eighty per cent of people are not prepared to pay fees for financial advice, according to a survey carried out for Money Marketing by market research firm Nunwood.

The firm asked 1,000 people across the country if they would be prepared to pay an up-front fee for independent financial advice and, if so, how much.

The results are at odds with the FSA&#39s research in CP121, which concluded that all consumers would be prepared to at least consider paying fees. The FSA based its research on 36 face-to-face interviews and questioned another 40 people in focus groups.

According to the Nunwood survey, only 5 per cent said they would pay over £100 for advice while only 1 per cent would be prepared to pay over £250.

Reluctance to pay up-front fees holds across the board, regardless of age, gender, socio-economic group or location.

Even in London, where consumers are understood to be relatively financially knowledgeable, 79 per cent of people said they would not pay an up-front fee and only 6 per cent would be prepared to pay over £100.

Campbell Insurance Services IFA Amy Stockdale says: “I am not surprised that the public are not receptive to fees. It is not black and white but in certain specific areas, like term insurance, commission works for clients.”

•Comment, p35

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