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RDR improved confidence in advice, but not take up: study

The general public believes that the RDR has worked to improve standards of the professional advisory market but the majority of Britons still have not sought advice, a study has found.

Research conducted by the Personal Finance Society among 2,000 consumers in England, Scotland and Wales, found that 66 per cent of the population has never sought advice.

While those aged between 55 and 64 years old are more likely to have sought independent advice in the past, 58 per cent of this age group still has not gone to a financial adviser.

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However, 47 per cent of all people questioned said they agreed the RDR would help to improve their confidence in the professional advice market.

According to Keith Richards, chief executive of the Personal Finance Society: “There is genuine potential for improvements but the onus for future influence remains an opportunity for the adviser community.”

The survey also found that advisers, providers and the regulator need to communicate the message about the value and relevance of advice more effectively, to increase public confidence in making more informed decisions.

Mr Richards added: “The regulator is understandably expecting the advice profession to take responsibility for the drive towards better consumer outcomes.

“Encouragingly, there are clear signs that this responsibility is being embraced by an increasing number, by professional behaviour, improved culture and a greater desire as a whole for the industry to work more collaboratively.”