Some 65 per cent of investors say they would stop using a financial adviser if they began charging by the hour, according to Legal and General.

The firm questioned over 2,000 people for the survey which was carried out by YouGov.

Those with smaller portfolios, under £200,000, were most likely to stop using an adviser.

Those with portfolios above that figure were “marginally” less likely to stop using an adviser.

It is expected there will be a rise in the number of DIY investors in the next 12 months as a consequence of this.

A separate L&G survey of 195 financial advisers found that 57 per cent expected to see a rise in DIY investors.

The firm worries that if investors avoid using advisers due to  cost and start making their own investment decisions, this will severely affect their investment decisions especially with the current market volatility.

Simon Ellis, managing director of L&G, said: “Our research shows that consumers are planning to stop using the services of IFAs altogether if they begin charging by the hour, which supports the assertion that the total cost of investing for a consumer will go up in the post-RDR world.

“There is room in the market for both advised and non-advised sales. However, we cannot risk pushing consumers towards the latter by necessity rather than by choice.”