Financial advisors on average charge £156 an hour, a new research from the Association of Professional Financial Advisers (APFA) has revealed.
According to the research findings, the majority of advisers charge £150 or less per hour of service, with 49% charging £101- £150 and 15% charging £51-£100.
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The survey revealed that just a third of advisors charge more than £150 per hour, with 26% charging £151-£200 and only 8% charging a high end rate of £201-£250.
The research conducted by NMG Consulting among 225 financial advisors in June 2013 showed that more than three quarters of financial advisers (82%) have not changed their hourly rates since January, despite concerns over the impact of the Retail Distribution Review (RDR) on the cost of advice for consumers.
The study found that just 12% advisors participated in the study increased their rates, while 2% have decreased them. The remaining 4% did not know whether their rates had changed.
Chris Hannant, Apfa director-general, said: "Despite advisor numbers falling and firms initiating new RDR ready business models, the majority of advisers have stuck to their initial pricing models.
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By GlobalData"Many may have adjusted charges last year in anticipation of RDR implementation, but it’s testament to advisors that customers have had widespread stability on pricing so far in 2013."
"The average rate of £156 per hour provides the industry with a valuable benchmark. We are pressing the FCA hard on disproportionately high regulatory fees and we will track this average rate figure to ensure other financial pressures, such as regulatory fees, aren’t resulting in increased charges for clients," Hannanta added.
