One in six financial advisers believe that the FCA’s new Consumer Duty requirements on value for money assessments will lead to fee increases for clients.

A survey of 116 advisers found that 16% of advice firms expect the Consumer Duty value for money rules to spur to an increase in the total charges clients pay.

The new FCA Consumer Duty requirements arrive in July and will require firms and providers to ensure that clients are fairly treated at all stages of their ‘customer journey’ and that communication is clear and transparent.

The survey was carried out by Copia Capital, the investment arm of platform Novia Financial.

The poll found that while one in six advisers expect clients costs to rise, almost two-fifths (38%) believe the new requirements will have no impact, while a fifth (22%) expect to see a reduction in some or all fees.

The poll of 116 advisers was part of a recent Copia webinar on the value for money assessment requirement of the Consumer Duty.

Copia said the poll findings show “considerable change” in adviser sentiment since the same question was asked last October. In October almost two-thirds (64%) thought the rules would have no impact, a fifth (18%) of firms thought they would lead to a reduction in some or all fees and just one in 50 (2%) expected an increase in overall charges.

Copia said the poll findings matched its own conversations with advice firm.

The firm said in recent meetings with advisers, several firms currently charging clients less than 1% per annum say they are now considering putting their fees up - either increasing the absolute fee or raising the asset thresholds where fees decrease.

Copia says the Consumer Duty may be encouraging advice firms to re-evaluate the value they provide to clients and come to a better understanding of the cost of the services they provide. It says it believes that overall the cost of advice could increase marginally.

The webinar coincided with the addition of a free guide and template within Copia’s Consumer Duty Toolkit to help advisers complete their value for money assessments. Advisers can register for the Toolkit at: https://www.copia-capital.co.uk/consumer-duty-toolkit/.