What is an ongoing adviser charge?
An ongoing adviser charge is a recurring fee for a continuing advice service, usually a percentage of your investments taken each year, which a firm may charge only while it provides that service.
Among firms charging a percentage, the median standard ongoing rate ran from 0.5% to 1% a year in 2025 (FCA retail intermediary market data 2025, Table 25, published July 2026).
The rules on ongoing charges
COBS 6.1A.22R allows an adviser charge to be paid over time only where the firm has disclosed the ongoing service with its price, and you have a right to cancel it. That right must be "reasonable in all the circumstances, without penalty and without requiring the retail client to give any reason".
The FCA's guidance on the disclosure says it should explain that a percentage-of-funds charge "may increase as the fund grows", and "how the retail client can cancel this service" (COBS 6.1A.26G).
Why the percentage hides the pounds
A percentage charge grows with your money. 0.75% is £1,875 a year on £250,000 and £3,750 a year on £500,000, for what may be the same service. Over many years, the fee also takes the growth those pounds would have earned. The fee impact calculator shows the effect over time.
The FCA's 2020 evaluation found more than 80% of ongoing charges set at one of three price points, 0.5%, 0.75% or 1.00%, and an average of 0.8%.
What the service should include
Under the current rules, a firm charging for ongoing advice must provide the service it described, which usually includes at least an annual review of suitability. In its review of 22 large firms, published on 24 February 2025, the FCA found reviews were delivered in around 83% of cases. In a further 15% the client declined or did not respond, and in fewer than 2% the firm had not attempted one.
The FCA's consultation CP26/10 (March 2026) proposes replacing the annual review requirement with a duty to show the service is "commensurate with the fee charged". A policy statement is expected in the fourth quarter of 2026. Until then, the current rules apply. If you are paying and not being reviewed, see what advice costs and the complaints guide.
Related definitions
Sources
- FCA Handbook, COBS 6.1A — Adviser charging and remuneration
- FCA, Retail intermediary market data 2025 (published 23 July 2026)
- FCA, Evaluation of the impact of the RDR and FAMR (December 2020)
- FCA, Ongoing financial advice services: multi-firm review (24 February 2025)
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.