FAQ 
 

Q: What fees do financial advisers typically charge in the UK?

Financial adviser fees vary widely. Initial fees for a new piece of work typically range from 1% to 3% or more of the amount invested. Ongoing annual fees typically range from 0.5% to 2.5% per year, though some commission-based arrangements, more common in offshore and international markets, can be significantly higher. The total cost of ownership, including platform fees and fund charges, can push the overall ongoing cost to 3% or 4% per year or more in a commission-based model. Our calculator models three common structures based on independent market research.

Q: What is the difference between fee-based and commission-based advice?

A fee-based adviser charges you directly for their service, either as a fixed fee, an hourly rate, or a percentage of assets. You know what you are paying and why. A commission-based adviser is paid by the product provider when they place your money into an investment. This can create conflicts of interest, often result in higher overall costs, and make the charges less visible. Metis is an independent, fee-based adviser. We do not receive commissions.

Q: Is a 1% ongoing fee reasonable?

It depends entirely on what is included. A 1% ongoing adviser charge can represent excellent value if it includes comprehensive ongoing services such as regular reviews, tax planning, access to your adviser, and proactive management of your financial plan. It does come down to the value of your investment, though, as 1% on a large investment could be expensive. 1% is just the adviser charge, though. You have to add platform/product charges, fund charges, and potentially investment management charges as well. Product and investment charges are typically where extra, unnecessary costs arise. 

Q: How do fees affect my long-term investment returns?

Fees reduce the amount of money that remains invested and compounds each year. A portfolio growing at 7% gross with 1.5% annual charges grows at a net rate of 5.5%. Over 30 years, this seemingly small difference has a dramatic effect. Our calculator quantifies this precisely, enter your investment amount and growth rate to see the impact for your specific numbers.

Q: Are the fee structures in this calculator based on real data?

Yes. The three fee structures modelled, low fees (e.g. Metis), average advisory firm, and commission-based model, are based on independent market research and reflect charging structures commonly encountered in the international markets. They are indicative rather than exact, and the fees you are actually paying may be higher or lower. If you would like to understand exactly what you are paying, a Metis adviser can review your current arrangements. 

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