A survey of 75 financial advisers in the UK shows that many of them have moved significantly towards a fee-based charging model and away from trail commissions.
Nearly half of advisers (48%) who participated in the survey said they had half or more of their recurring revenue coming from fees, says platform provider FundsNetwork, which carried out the research.
Advisers have until April 2016 to make the switch following the shake-up of retail fund sales in the UK under the Retail Distribution Review (RDR). Trail fees for new business are already banned but the “sunset clause” allows for pre-RDR business to shift gradually to the fee model.
But with 52% having less than half of recurring revenues coming from fees, the research reveals that the majority of respondents have some way to go in transitioning from trail commissions, says FundsNetwork. Just over one quarter (26%) of respondents said they need more help from their platform provider in order to move clients to fees.
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