FSA: Customers more confident in IFAs than banks

Almost two-thirds of people who sought advice from an IFA were ‘very confident’ in the advice received compared to only one third of those who instead chose a bank or building society, the Financial Services Authority has reported.

In its annual study, Consumer awareness of the FSA and financial regulation, 61 per cent of people who went to an IFA for advice felt ‘very confident’ of that advice, and 30 per cent felt ‘fairly confident’.

In contrast, of those who went to a bank or building society only 33 per cent felt ‘very confident’ in the advice received and 55 per cent felt ‘fairly confident’.

The overall totals were positive for both groups, with about nine out of ten in each group feeling either ‘fairly’ or ‘very’ confident.

Only 17 per cent of respondents said they had received professional advice about a financial product in the last 12 months. However, of those that had, the largest portion had received it from an IFA. Around 41 per cent had advice from a bank or building society.

Almost a third of people who have had problems with a financial services firm have reported bad customer service, according to the FSA report.

In its report, 11 per cent of respondents said they had problems with a financial services firm in the last 12 months. Of these, 33 per cent said that problems were due to poor customer service. This was followed by 23 per cent whose problem arose from the company’s handling of complaints.

Delays in transferring money came third place at 12 per cent. Confidence in advice, refusal of service, being pressed hard to buy and insurance were the source of trouble for nine, eight, seven and six per cent of respondents respectively.

The regulator surveyed a sample of 2,064 adults across Great Britain, across multiple demographic groups, interviewed face to face in their homes.