A total 83% of advisers have adopted this system for some of their clients, at an average fee of 2.67%, according to a survey of over 1000 advisers conducted by intermediary database My Touchstone.
The survey also found that advisers use different fee-charging models for different clients. Nearly half (46%) of advisers charge some clients an hourly rate, at an average £164.92 an hour.
Almost one-third (29%) of advisers bill select clients a fixed one-off fee, while 10% charge some of their clients a retainer.
The fee systems reflect RDR demand for fees to be presented in a transparent and affordable manner.
Peter Welch, Intermediary Director of MyTouchstone said: “Obviously the charge will be transparent to the client, but by deducting it from the total investment being made, rather than as an additional fee, advisers may feel this is more likely to be accepted by their clients.
“This new insight demonstrates how advisers have adapted to the new regulatory framework while limiting disruption to their business models and the way clients have previously been accustomed to working with them".
