Consumer group Which? says it has found huge variations in IFA fees across the UK, with one quoting £2,450 more than the cheapest alternative to transfer money into a stakeholder pension.
Which? asked 200 IFAs to give quotes for different services and found large regional variations in the fees. Although the average fee quoted to transfer a £10,680 investment into a stocks and share Isa was £356, one adviser in the south-east quoted £2,500. Two IFAs in the south-west and the east of England quoted £106.
Meanwhile, an IFA in the north-west quoted nearly £2,000 more to arrange a protection policy for a 30-year old female than an adviser in Scotland quoted to do the same job. The average fee Which? were quoted by IFAs in this case was only £596.
Which? wants IFAs to be forced to publish a rate guide on their website, so that people can make an informed decision about which IFA to choose and what is a reasonable amount to pay.
Which? believes that consumers should go to an IFA rather than approaching their bank for advice, and has produced a list of key questions that people should ask in order to help them choose an IFA that offers a fair price and good service.
Peter Vicary-Smith, Which? chief executive, said: “Financial advisers should be much more transparent in their pricing
