Nearly half of firms get at least 50% of recurring revenue from fees - study

Nearly half of advisers already have the majority of their recurring revenue coming from fees, according to a FundsNetwork survey, less than two years to go until the April 2016 deadline where all on-platform assets need to be moved to clean share classes which do not pay trail commission.

The FundsNetwork survey, which asked advisory firms about their understanding, sentiment and intentions around the ‘sunset clause' and moving to a fee arrangement, suggested a significant proportion of advisers have made good progress in moving to a fee-based charging structure. However, the research also suggested that the majority of respondents have some way to go in transitioning to fees, with more than half (52%) of advisers stating that they currently have less than half of their recurring revenue coming from fee-paying clients. While the majority of advisory firms that were sur...