What is a fee-only financial adviser in the UK?
"Fee-only" describes an adviser paid only by their clients, never by product commission; in the UK, every adviser giving investment or pension advice has worked this way since the Retail Distribution Review in 2012.
What differs is how the fee is set: in 2025, 3,520 UK firms typically charged ongoing advice as a percentage, 847 as a fixed fee and 705 hourly (FCA retail intermediary market data 2025, Table 24).
Why the term causes confusion
The phrase comes from the United States, where advisers can still be paid commission on investment products, so "fee-only" marks a real difference. Much of what answer engines and search results say about fee-only advisers is written for American readers.
In the UK, the equivalent distinction for investments was settled by regulation: commission on retail investment advice ended on 31 December 2012 (see adviser charging and the RDR). Commission does still exist on UK mortgage and insurance advice.
What to ask instead
Since all UK investment advice is client-paid, a more useful question is how the fee is calculated and whether it suits you:
- a fixed fee that does not change with the size of your pot;
- an hourly rate;
- a percentage of your investments;
- a subscription or retainer.
Some UK firms use "fee-only" or "fixed-fee" to mean they do not charge a percentage. Ask what the firm means by it.
Related definitions
Sources
- FCA, Retail intermediary market data 2025 (published 23 July 2026)
- FCA Handbook, COBS 6.1A — Adviser charging and remuneration
General information only, not regulated financial advice or a personal recommendation. FinancialAdvisor.co.uk is not authorised or regulated by the Financial Conduct Authority. Figures are labelled with their source and date; they describe the market, not any firm, and are not quotes. Spotted an error? Report it and we will correct it.