Guide · Adviser fees
Financial adviser fee tiers explained
A tiered fee can charge different percentages on different slices of your assets. The useful comparison is the total annual pound cost.
How do fee tiers work?
A firm might charge one percentage on the first band of assets and a lower percentage on the next band. That means the quoted top rate may not apply to every pound you hold.
Ask for a worked example at your asset level
Two tiered schedules can look similar but produce different annual totals. Ask the adviser to show the actual cash fee for the amount you expect them to advise on.
What else should you check?
Minimum annual feeA minimum can override the percentage calculation at lower asset levels.
Fee capSome firms may cap the annual adviser charge.
Initial feeImplementation or planning work may be charged separately.
Other chargesPlatform and investment costs can sit underneath the adviser fee.
Compare totals, not isolated percentages
The fairest comparison is the expected year-one cost, the normal ongoing cost and the service included at each level.
Sources & further reading