Advisers are keen to provide financial advice to clients looking at long term care options, with research from the Association of Professional Financial Advisers revealing that close to 60 per cent of UK financial intermediaries would want to be included on council referral lists.
The figures, compiled through NMG Consulting’s Financial Adviser Census, reveal that almost three in five advisers (58 per cent) would like to be included in referral lists should local authorities be given a duty to refer to regulated advisers.
The research also shows that 35 per cent of advisers already provide advice to clients on long term care.
Referral requirements for self-funders in the Long-Term Care Bill, which is due to be debated in the House of Lords today (9 January), have become a contentious topic after an amendment that would have demanded councils recommend only regulated advisers was rejected.
Kay Ingram, divisional director of individual savings and investments at national firm LEBC Group, told FTAdviser last year that this had been the result of lobbying from councils, many of which are wary of referring to financial advisers in general.
Ms Ingram made the comments following a meeting held by the Association of British Insurers and attended by local authority representatives. She said the councils “seemed wary” of referring those that need long-term care to financial advisers “due to mis-selling scandals of the past”.
In an interview with FTAdviser in December, Chris Hannant, director general at Apfa, said the trade body plans to hold talks with local authorities over the coming year in a bid to bolster the amount of referral business related to long-term care needs.
He was speaking in the wake of the publication of a YouGov study, commissioned by specialist annuities provider Just Retirement, which found 63 per cent of 2,000 adults surveyed would be certain or likely to seek professional financial advice to help find ways to pay for care costs.
Commenting on the NMG research, Mr Hannant said: “The Care Bill currently making its way through Parliament has the potential to revolutionise the care system in the UK. Under the Bill, local authorities will have an important role to play in ensuring that people who would benefit from financial advice can access the help they need.
“Funding long term care will mean people have to make far-reaching financial decisions, so access to advice from a regulated firm will be vital. This research shows that there is considerable appetite among the adviser community to make financial advice available to anybody who needs it.
“Apfa will be working with government, local authorities and others in the financial services industry to ensure that it is made as easy as possible for people to know how to go about getting regulated financial advice and where they can find it.”
