But he agreed there could be issues for clients with smaller pots where the ongoing advice fees do not cover the cost of an annual review. “A £10,000 pension pot at 0.5 per cent per annum equates to £50, which buys you somewhere between an one hour and 15 minutes of an adviser’s time,” he said.
But Alan Chan, director at IFS Wealth & Pensions agreed with the Mifid rule. He said: “If you are receiving a fee from the client’s policy then you must be providing a service or ongoing advice in return.
“And so there will be some clients which will not be commercially viable to serve.”