Mifid II  

Mifid II blamed for stopping best advice deals

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.”