The IFA has issued a statement outlining its views on adviser fees, which the institute’s president Nigel Tate said was in response to an online debate on an adviser blog that had “got out of hand”.

In its statement the institute said there had been many academics and practitioners attempting to answer the question of how advisers put a price on what they do for their clients.

“It has been debated nationally and internationally and while there are no surprises to those involved in the financial advice profession, the marketplace has not come up with the ideal measure,” the statement said.

“IFA maintains the view that valuing the services provided to any client is ultimately based upon the value the client feels appropriate for them. This includes the work done by the adviser and whatever else is agreed between the client and their adviser,” the IFA statement said.

“IFA does not mandate any pricing methodology. Rather, it supports the professional obligation on the adviser to clearly disclose their fees to the client and to adhere to what is jointly agreed between the client and their adviser.”

Tate said some of the online comments had been “bollocks” and the IFA felt it would be prudent to come out with a statement of what was appropriate in terms of financial planning fees.

“Financial planners actually charge fees for a range of services not a range of products,” he said. “Regulators will ultimately have views on fees that are charged and we want to pre-empt regulatory discussion about that by providing them with the over-arching reasoning of the institute.”

Tate said financial planners could learn from the legal profession, which took into account a number of different factors including benefits to the client, the level of urgency and the seniority of the person conducting the work.

“It costs me more when I use a partner than a junior solicitor.  When we deal with somebody I tell them I’ve got 25 years experience in the profession and somebody has to pay for that.”