Financial advisers must be open about charges – or the regulator should step in

Debate is raging about a reported advice gap, with millions apparently unable to afford, or reluctant to pay for, financial advice that could help them make an informed decision about how they should save and invest their money.

My view is that the right advice can be worth paying for if it improves your financial health. But some advisers weaken this argument by failing to be open about their charges.

The latest evidence that independent financial advisers are not being upfront with their customers comes from Which?. The consumer group analysed 500 IFA websites and found that more than two-thirds didn't publish their fees and charges online. As Richard Lloyd of Which? argued, this is not good enough: "Paying for financial advice could be one of the best investments people can make, but a lack of transparency on fees could put them off at the first hurdle."

You shouldn't choose an adviser purely on their charges, but it is an important part of the equation. If IFAs don't fall into line, it may be time for the regulator to step in.