JP Morgan Asset Management has published a guide for financial advisers on adviser charging and how they can best negotiate between commission-based and fee-based advice.

The report surveyed 2,008 individuals nationwide aged 18-65+ from all social groups.

Some 59 per cent of people approved of adviser charging but only five per cent currently paid for advice.

People who worked in the managerial and professional sector or earnt £55,000+ were most interested in paying for advice.

The most popular subject to receive financial advice on was advice on tax-efficient investing, followed by reviewing existing financial affairs.

However there were worries about how much consumers expected advisers to charge. Many expected a complete review of financial planning to cost, on average, £371. They expected Isa advice to cost £257 and pension advice to cost £256.

The report found that men were willing to pay significantly more than women for financial advice with men opting to pay £467 for a complete review compared to £256 for women.

Contrastingly, featured company Affluent Financial Planning said that it charged clients a minimum of £750 for advice which was to be paid up front by the client.

Some 37 per cent of people favoured a fixed sum per task while only 11 per cent were in favour of an hourly fee.

Another 37 per cent of respondents did not know how much an annual fee for an ongoing advisory service should be and 27 per cent said they would only be willing to pay one per cent of their investments.

Affluent Financial Planning charged clients one per cent each year on a minimum of £1,200.

JP Morgan says it believes the queries over fees were down to lack of understanding rather than resistance of fair fees and that once adviser charging was in place customers would be more aware of what they should be paying.

JP Morgan also hopes that adviser charging will mean financial advice is valued as a profession rather than a sales job.

Jasper Berens, head of UK retail, said: “Structured intelligently, an Adviser Charging model provides an opportunity for a clear and fair value to be placed on financial advice, after years of being devalued as something thrown in for free with the sale of an investment product.”