UK clients willing to pay only AUD$230 for financial advice
An average UK consumer is willing to pay no more than AUD$230 for financial advice, according to a survey carried out by CoreData in the UK.
This low figure excluded the fact that approximately a fifth of those who would consider enlisting the services of a financial adviser would pay nothing at all for advice, the report said.
The analysis revealed that around 2.1 million households in the UK have a full-time dedicated financial adviser, but only half are aware of the adviser's remuneration model.
More than a third of respondents believe they did not pay for financial advice.
"On a positive note, consumers would expect to pay an average of [AUD$59] per hour to engage a financial adviser, so perhaps the challenge is for advisers to articulate that a thorough financial review of a would-be client's situation requires more work that the latter anticipates," said Craig Phillips, head of UK and Europe at CoreData Research.
The most popular method of remuneration is a flat annual fee, while other methods include an admin paid out of the product (16 per cent), an hourly fee (11 per cent), an upfront fee paid by the product manufacturer (less than 3 per cent) and other ways.
The average UK consumer believes four hours is sufficient enough time for a financial adviser to conduct a thorough review of their financial situation, the report found.
"A key challenge for financial advisers is in gently articulating the cost of delivering a full financial plan - clients need to appreciate advice is much more than just the face-to-face time spent with an adviser," Phillips said.
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