Your Industry  

Investors blind to value of paid-for advice: survey

The survey, of both financial advisers and investors, found that 34 per cent of investors who have invested via an IFA in the last five years will in future seek advice direct from providers.

GfK said that this figure was lower than IFA expectations of roughly14 per cent of investors exiting the independent advice market.

Martin Grimwood, GfK divisional director for life, pensions & investments, said: “We already know that IFAs have segmented their client base in response to RDR and the majority is offering differentiated services to retain as many clients as possible.

Article continues after advert

“What’s missing here however is the client perspective. With 34 per cent of past customers saying they will ‘never’ pay for advice, our recent research shows that far more people plan to avoid fees than the IFA community expects.”

He added: “Many of those people who plan to go direct are the next generation of serious investors. They are accumulating their wealth now and should be the perfect audience for the support and advice of an adviser.

“We believe it’s essential that the IFA community address this potential drop-out by ensuring the value of independent advice is clearly communicated – our research suggests this important message is failing to get across.”