On 1 January 2013, RDR kicks in. This will mean that financial advisors will no longer recieve commissions from the product providers (which of course come out of your investment) but instead will have to change you fees. The industry reckons that IFA's will chargew about £160 plus VAT an hour.
On that basis, a recent survey by BDO worked out that a £50000 investment would cost you £17,797 in commissions over 20 years. The same investment is likely to cost you £22,205 in fees over the same period.
Little wonder then that another recent survey by JP Morgan Asset Management found that only 13% of households with income over £50,000 would be prepared to pay an IFA fees.
On that basis, a recent survey by BDO worked out that a £50000 investment would cost you £17,797 in commissions over 20 years. The same investment is likely to cost you £22,205 in fees over the same period.
Little wonder then that another recent survey by JP Morgan Asset Management found that only 13% of households with income over £50,000 would be prepared to pay an IFA fees.
