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I would like to find an IFA who's happy to take a fixed fee or hourly rate for an annual meeting

11 March 2021

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Question by Micheal

Just like another of your readers - "I would like to find an IFA who's happy to take a fixed fee or hourly rate for an annual meeting and/or ad hoc occasions we need advice, but it is tricky to stomach 1-2% fees on FUM for the current arrangement of a meeting if they remember to arrange it and a dull (not Boring!) Friday email from their CEO".

Answered by Dennis Hall

Hi Michael – I want to assure you that there are financial advisers who will work on fixed fees, many who will work on hourly rates, and others who will cap or tier their percentage-based fees. Admittedly these advisers are harder to find, in part because demand from consumers has been low. When I started Yellowtail in 2006, I couldn’t find enough clients prepared to pay fixed fees, when most other advisers were still paid by commission. The world is changing, but not as fast as we might have hoped.

There is a growing number of smaller advice firms that have been established by advisers escaping the large ‘sausage-machine’ advice firms. They don’t want to be told by head office to charge 1-2% fees for not providing value for money. These ‘new model’ advisers typically call themselves as ‘financial planners’ and will have a local rather than national presence. Their businesses are built around regular (at least annually) meetings and use cash-flow modelling to guide conversations around money, which is where they see they add real value (and my clients tell me that is where they experience the greatest value).

Technology allows these smaller firms to compete (and win) against larger firms. The advisers are well qualified (often Chartered) will have access to efficient investment platforms and can be flexible and accommodating with their pricing. They’re not going to be the cheapest, but they will provide good value for money.

Answered by

Dennis Hall

Chartered Financial Planner

I’ve only ever had two careers, Royal Marines Commando and Financial Planner. The physical requirements between the two roles are a world apart, but what I learned in the Marines about high standards, ethical behaviour and purposefully serving others has served me well as a financial planner.