Your IndustryAug 20 2015

Clients trust advisers more than banks: Ascot Lloyd

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Clients trust advisers more than banks: Ascot Lloyd

Trust in financial services industry is returning, with more clients moving into the advisory space on the back of scandals in the banking sector, Ascot Lloyd chief executive Richard Dunbabin said.

Speaking to FTAdviser, he said that the professional standing of advisers is significantly higher than it has ever been before.

“You’ve got to know that the people giving you advice are qualified to do so. The providers of the solutions are highly regulated, so I think trust would follow.”

“If you look at trust in the banking world, it has diminished now the banks aren’t particularly active, so where do customers go for advice on investments? There is a huge opportunity for the independent advisory sector.”

Mr Dunbabin added that now most of the banks are restricted, people are having to look elsewhere to get advice on pensions and investments.

According to research published by consultancy PricewaterhouseCoopers last year, financial advisers are more than twice as trusted by the general public as fund managers in the wake of the financial crisis.

A survey of over 2,000 people across the UK found that 28 per cent trusted financial advisers, while just 12 per cent trusted fund managers and 15 per cent trusted investment banks.

The survey suggested that consumers’ personal experience with financial advisers is generally the most significant factor in determining the level of trust.

In addition, Mr Dunbabin talked to FTAdviser about Ascot Lloyd’s consolidation plans and expressed the need for careful selection when looking at potential acquisitions, having wrapped up 31 deals to date.

“We are kind of fussy on what we consolidate, which is important. So geographically, culturally, our primary concern is dealing with clients expectations.

“If the firm is professionally run and gives a good quality service, we feel that we are able to improve upon - equal to or better than. Bearing in mind profits too, our checklist is pretty strict.”

Speaking around the possibility of any new acquisitions, Mr Dunbabin that there are still other targets, but nothing specific at this stage.

Meanwhile, the integration of Ascot Lloyd and PFP Group will be going on way beyond the next few months, he explained.

The combined entity will keep Ascot Lloyd branding and manage client assets of £2.2bn, with 168 staff based in 10 locations across the UK.

ruth.gillbe@ft.com