IFAs receive ‘glowing report’ in FSA research

The latest research on consumer awareness of financial regulation by the City watchdog showed that 61 per cent of IFA customers believed they had received appropriate advice.

A 54-page report, Consumer Awareness of the FSA and Financial Regulation, showed only 33 per cent of customers were happy with the service they received from their banks or building societies.

More than one in six of the 2064 adults surveyed by the regulator received professional financial advice in 2011, almost half from IFAs and two in five from a bank or building society.

One in eight people surveyed had no financial products. Almost four in five had a bank account and three in five had a savings account. More than one in four had a tax-exempt special savings account or cash Isa.

The research showed that one in three respondents had a mortgage, the same proportion that had life insurance, but only one in eight had mortgage protection. One in six had a personal pension.

Asked about their awareness of the FSA, more than two in five people surveyed had no knowledge of the regulator. The number dropped to one in three of those aged 35 to 64 who were the main users of a wider range of financial products.

Of those surveyed, 60 per cent said they were confident that the FSA effectively regulated the financial services industry, but only 5 per cent were very confident.

The survey also revealed that 55 per cent were confident that financial firms treated their customers fairly, while another 11 per cent reported having a problem with a financial services’ firm in 2011. One in three of the problems stemmed from poor customer service, with slightly less resulting from handling of complaints.

Other problems included money transfer delays, confidence in advice given, being refused service and pressure selling.

Duncan Glassey, partner for Edinburgh-based Wealthflow, said: “The figures reflect the effort, attention to detail and professionalism of IFAs. It is a glowing report that IFAs are so well received.

“The IFA world is coming of age as a profession. We can be very proud of it.”