Jenny Davidson, Commercial Proposition Director at Quilter, comments on the predicted rise in adviser fees due to the incoming Consumer Duty legislation.

New research from Quilter has found that almost a third (32%) of financial advisers expect their customer fees to increase as a result of the Financial Conduct Authority’s (FCA) Consumer Duty.

Over half of advisers (55%) expect their fees to remain the same, while just 9% expect fees to decrease as a result of Consumer Duty.

The research also shows financial advisers may feel they have no choice but to increase fees to maintain profitability as 44% said they believed profitability would decline as a result of the Consumer Duty, while only 5% said that profitability of their firm would increase.

Jenny Davidson, Commercial Proposition Director at Quilter, comments:

The implementation of the Consumer Duty has provided a useful reminder to advisers to evaluate their offerings and importantly price their services accordingly for different client segments. The fact that almost a third of advisers are saying that fees will likely increase may be a reflection of the costs associated with adapting to fulfil the requirements of the Duty, particularly where those costs are borne without wider network support.

Full release: A third of advisers expect fees to increase as a result of Consumer Duty

✉️ Gregor Davidson, Quilter, 07917522784 / Gregor.davidson@quilter.com