The company built an algorithm to crawl the web for IFA pricing details. It used the information to produce a report called: VouchedFor.co.uk "Fee-Based Advice: Beyond The Tipping Point?" It reveals that investors could be £4200 better off with a financial adviser who is fee-based rather than commission-based.

The report found 55 fee-based Independent Financial Advisers (IFA) now publish their fees online. On average, they charge £143 per hour, or 1.8% of assets upfront followed by 0.7% p.a. thereafter for as long as the client retains their services. See table.

They refund all commissions, typically 3% upfront and 0.5% p.a. thereafter. A client investing £100k over 6 years, who seeks only basic one-off advice, can receive £4200 commission back (net of fees) with a fee-based adviser, which would otherwise have been pocketed by a commission-based adviser.

In reality, fee-based advisers are committed to delivering high quality ongoing advice, selecting the very best products, meaning this benefit will often be best captured through better advice and outcomes, rather than commission refunds. Around 25% fee-based IFAs charge an average £1338 for a financial plan, pointing to an even higher quality of advice.

From 2013, the Retail Distribution Review will ban sales commission due to the bias it creates. Instead all financial advisers will agree fees directly with their clients. However, the FSA has warned advisers may mis-sell in order to maximise commission while they can. Some 18% of IFAs are expected to leave the industry in 2013, and a further 66% remain predominantly commission-based.

The report found it can be difficult for consumers to find a fee-based adviser. Today only 230 IFA firms (around 3% of the total) advertise a fee-based option on their website, and many online IFA directories are unable to verify an IFA's charging structure.

Adam Price, Founder at VouchedFor.co.uk, said: "While some advisers have embraced RDR early on, making their charges more transparent and enhancing their proposition, many are either yet to make the transition, or are resigned to leaving the industry."

"In this transitory environment, the arguments for selecting a fee-based adviser who has already embraced RDR are more compelling than ever."

"By issuing this report we hope to re-energise the debate, and encourage the dissemination of practical and current advice to consumers seeking an adviser they can trust."

Click here to view the report www.vouchedfor.co.uk/press/vouchedfor-report-fee-based-advice.pdf