Prevalence of ad valorem fees 'worrying' - Model Office

"Adviser charging is still so disparate - we think clients are still confused around charging. So how or what they're being charged? That can only seek to confuse and I'd like to see far more clarity," said Davies (pictured). "The fact that ad valorem based charging still prevails is a worry, a fair flat fee should be agreed." The ad valorem fee structure is typically an annual fee, calculated as a percentage of the amount of the assets entrusted to the adviser. One in seven (14%), meanwhile, charged on a retainer basis, while a similar number (13%) charged on a ‘task' transactiona...