Working with an adviser

What the process looks like, how fees are structured, and what you should expect for the money.

Knowing what to expect makes the relationship work better, and makes it easier to tell whether you're getting value.

The process

Initial meeting. Usually free, usually an hour or so. They find out about you; you find out about them. No recommendations at this stage. You should leave knowing what they'd charge and what they'd do.

Discovery. A detailed picture — income, spending, assets, debts, pensions, protection, goals, attitude to risk, capacity for loss. Expect it to be thorough. An adviser who recommends something after one short conversation hasn't done enough to know it's suitable.

Analysis and planning. Their work, usually including a cashflow model testing different scenarios.

Recommendation. Presented in a suitability report — a written document setting out what they recommend, why, what the alternatives were, what it costs, and what the risks are. This is a regulatory requirement and it's your evidence if something goes wrong later.

Read it properly. If it doesn't make sense, ask until it does. A recommendation you don't understand isn't one you can sensibly accept.

Implementation. Transfers, applications, paperwork.

Ongoing review, if you've signed up for it. Typically annual.

How fees work

Initial fees cover the advice and the work of implementing it. They're charged in one of two ways, and it's worth knowing which you're being offered.

A fixed fee based on complexity is agreed at the outset, reflecting the work involved rather than the size of your portfolio. Consolidating three straightforward pensions is less work than restructuring an estate, and a fixed fee prices that difference directly. It's easy to compare between firms, it doesn't rise just because you have more money, and you know the cost before you commit.

A percentage of the amount invested is the traditional approach and still common. It scales with your portfolio, which means the same piece of advice costs considerably more on £500,000 than on £100,000 even where the work is near identical. Percentage charges usually tier down on larger sums.

Neither is automatically better. A percentage charge can work out cheaper on modest amounts, and a fixed fee usually wins as the sums grow. What matters is asking which applies, and getting the figure in pounds either way.

Ongoing fees cover the continuing relationship, and are usually charged as a percentage of the assets under management. Around 1.00% a year is a common figure, though it varies and some firms tier it down as portfolios grow.

Hourly rates exist and suit one-off work.

Two things worth insisting on:

Get it in pounds. A percentage disguises the size. 1.00% sounds modest; on a £400,000 portfolio it's £4,000 a year, and it rises automatically as the portfolio grows even where the service doesn't change.
Ask what sits on top. The adviser fee isn't the whole cost. There's also the platform fee and the underlying fund charges, and the total is what matters — see What you actually pay.

What an ongoing fee should buy

This is where value varies most, and where people quietly pay for years without receiving much.

A reasonable ongoing service includes:

An annual review meeting, with your plan updated
Cashflow rerun against what's actually happened
Rebalancing and fund review
Tax year-end planning — allowances used, contributions made
Being available when something changes
Adjusting for rule changes

If your ongoing fee buys a statement once a year and nothing else, you're paying an advice fee for an administration service.

You can stop paying it. Ongoing fees are cancellable. You keep your investments and manage them yourself or move to another adviser. Some people take advice at the outset and manage it themselves afterwards, which is a legitimate choice.

What to expect from a good adviser

Plain English. Jargon is often a sign of not understanding it themselves.

Willingness to disagree with you. An adviser who tells you a plan won't work is doing the job.

Clarity about what they don't know, and referral where something is outside their expertise.

Proactive contact when rules change, not just at review time.

No pressure, ever.

What they should expect from you

Honesty about your finances, including the parts you're embarrassed about. Advice based on incomplete information is unreliable.

Clarity about what you want, even where it's vague.

Telling them when things change — a new job, an inheritance, a separation, a changed plan.

Turning up to reviews. The review is where most of the ongoing value sits.

When to leave

You can't get hold of them
Reviews stop happening but the fee doesn't
You don't understand what you're invested in, and asking doesn't help
Recommendations feel product-led
The fee has grown with your portfolio but the service hasn't
You've simply lost confidence

Leaving is straightforward. You can cancel ongoing charges, and you can transfer to another firm or to a platform you manage yourself. Nobody is locked in, though exit charges on older products occasionally apply, so check before moving.

This article is for general education only and isn't personal advice. Fee levels vary considerably between firms and by the complexity of the work.