A poll of 500 forum users found the majority in the advisory sector were uncertain about maintaining their fee income during 2013.
Donna Hopton, managing director of Cherry, said the research found only 10 per cent believed the retail distribution review would have a positive effect on their fee income.
She said: “Whichever way you look at it, barely one in 10 advisers thinks there are any positives to take from RDR.”
The survey also suggested that consumers could be left in the hands of banks or with no access to advice at all as a result of RDR.
Ms Hopton said: “Typical responses from advisers were along the lines that the majority of people on modest incomes will abandon professional financial advice, and that only the higher net-worth client profile will continue to seek advice.
The ramifications for the public are obvious - moving to a fee-based advice structure is likely to mean many people will be at the mercy of high street bank investment, mortgage and savings products, while the better off will benefit from a considered financial advice process.”
She said advisers were already under pressure from constant government meddling in pensions, adding: “Our survey’s stark conclusion is that just 10 per cent of advisers think their incomes will rise as a result of RDR. It is a bleak prospect for 2013 for both advisers and consumers.”
| Adviser view |
Simon Webster, managing director of Kent-based Facts & Figures Financial Planning, said: “We are expecting business to go up. We probably lost 30 per cent of production last year when advisers were completing their exams, so technically we should be up on activity this year. “Those who spent time doing exams can now spend more time in front of clients. Advisers who are only just charging post-RDR rates and are only now trying to justify fees will find it difficult to adapt.” |
