A significant portion of advisers anticipate an increase in ongoing advice charges over the next three years.
- According to Fidelity Adviser Solutions, 39% of advisers expect an increase in client charges.
- The 2024 IFA DNA report reveals that 83% of firms are revising fee structures amidst regulatory demands.
- Consumer Duty mandates have driven a comprehensive policy review across advisory businesses.
- Firms are actively revisiting processes, with many changes already implemented or underway.
Research conducted by Fidelity Adviser Solutions indicates a prevailing sentiment among financial advisers regarding the future of advisory charges. Approximately 39% of advisers predict that ongoing advice fees are likely to rise within the next three years. This expectation comes amidst a landscape of evolving financial regulations and client expectations.
The findings, derived from the 2024 IFA DNA report conducted by NextWealth, highlight a proactive shift in the financial advisory sector. An overwhelming 83% of firms have either already adjusted their fee and charging structures or are planning to do so. This strategic realignment is in response to heightened regulatory requirements imposed by Consumer Duty policies.
Consumer Duty has emerged as a critical driver for transformation within the sector. This regulatory framework necessitates a thorough examination and restructuring of existing policies and procedures across numerous facets of business operations. Firms are urged to align their structures with these pressing legal mandates, fostering greater accountability and transparency.
In response to these mandates, advisory firms have been prompted to undertake significant revisions to their operational processes. As noted by industry insiders, several firms have already initiated comprehensive reviews, with the majority of anticipated changes actively being incorporated or in advanced planning stages.
The financial advisory landscape is poised for change as firms adapt to increasing regulatory demands and anticipate rising advice charges.
