How do hourly rates for financial advice work?
Hourly-rate advice is charged for the time an adviser spends on your case, and the FCA expects a firm to say whether its rates are indicative or actual and how many hours the work will roughly take.
MoneyHelper puts typical UK hourly rates at £75 to £350, around £150 on average; in 2025, 1,006 firms typically charged hourly for initial advice (FCA retail intermediary market data 2025, Table 24).
What the firm should tell you
The FCA's guidance at COBS 6.1A.20G says a firm charging by the hour should state "whether the rates are indicative or actual hourly rates", the basis on which they may vary, and "an approximate indication of the number of hours" the service will take. Without the hours, an hourly rate tells you very little about the total.
When hourly charging is common
Hourly charging is often used for one-off or limited pieces of work, such as a single question, a second opinion, or checking a plan you have made yourself. It is less common for full ongoing relationships.
Comparing an hourly quote
Multiply the rate by the estimated hours, add VAT if it applies, and ask for a cap. Then compare the total in pounds with a fixed-fee or percentage quote for the same job.
Related definitions
Sources
- FCA Handbook, COBS 6.1A — Adviser charging and remuneration
- MoneyHelper, Guide to financial adviser fees
- FCA, Retail intermediary market data 2025 (published 23 July 2026)
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.