Advisers charging more post-RDR despite lower product prices

Advisers are charging clients more post-Retail Distribution Review (RDR), despite falling product prices, a consultancy hired by the Financial Conduct Authority (FCA) has found.

However, clients seem willing to weather the increase, with Europe Economics finding little evidence that explicit adviser charging introduced by the RDR has led to significant numbers of consumers no longer being willing to pay for advice. When choosing an adviser, consumers value quality indicators such as trust and reputation over cost, the review of the post-RDR landscape found. Product prices have fallen by at least the amounts paid in commission pre-RDR, and there is evidence some product prices could have fallen even further, the paper said. This is due in part to competitiv...