Only one in eight of high net worth and mass-affluent individuals in the UK are likely to seek out a fee-based service after the Retail Distribution Review bans commission payment from the start of next year, according to a new survey.

But JP Morgan Asset Management in the UK found, after having quizzed 2,000 people with more than £50,000 ($78,500) in investible assets, that 80 per cent will seek advice in some form. Only one in five will become fully self-directed. Around 40 per cent said they are receptive to task-based advisory services.

In a report entitled Winning Propositions: The consumer market post-RDR, JP Morgan said that interest in using a professional advisor peaks among those with a household income of between £150,000 and £250,000. Moreover, one quarter of advice-users with assets of £500,000 and above said they are “very willing” to pay for ongoing portfolio adjustments.

"Our research reveals that the most sought-after client segment - those expressly seeking to pay for ongoing advice - is relatively small and firms seeking to service this segment really need to be on the ball in terms of the service and features they offer," said Jasper Berens, head of UK funds at JP Morgan Asset Management.

"However there is also a large proportion of mass affluent and high net worth households seeking less conventional approaches to getting advice such as task-based and guided support," Berens said. "Firms that can think more creatively about how they can advise and service advice-seekers may discover a large and interested market out there.”

The survey also found that there is a stronger appetite to pay for early warning of market volatility than for new investment ideas, suggesting investors are more willing to pay to help avoid losses than to maximise potential gains.