A failure by providers to show value to consumers has had a damaging effect on the public’s appreciation of fund managers and advisers, PricewaterhouseCooper’s Mark Pugh has claimed.
Mr Pugh, UK asset management leader for the consultancy, said that barely one in four people trust financial advisers.
He said: “The lack of trust in fund managers and financial advisers partly reflects a failure of providers to articulate the value they are offering.
“Providers must find new ways to explain the services they are providing, encourage consumers to voice their goals, priorities and expectations, and to respond to these.”
Mr Pugh referred to research carried out by the consultancy for its yearly report, How Financial Services Lost its Mojo – and How to Regain it, which claimed that providers must find new ways to explain their services so that overall trust can be restored.
He cited figures from the 16-page report - based on a survey of 2,000 individuals - that showed the average person was still doubtful about the industry.
Just 28 per cent said they have faith in advisers, while only 6 per cent would trust them more than they would have a year ago.
The report also showed that while people believed the financial services sector has been strengthened in the wake of the crisis, some 57 per cent do not believe the reforms are sufficient to ensure it will recur.
Mr Pugh added: “Taking genuine and transparent steps to satisfy customer goals, priorities and expectations, especially where there is no obvious short term gain – or even a clear cost – to the provider, is a response we’re starting to see more of.”
Table 3: Financial services companies are more trusted to securely hold data
Which of the providers that acquires information on you do you trust to hold this data securely?
Source: PwC
Adviser view:
In July, the FCA and the PRA announced joint accountability measures for banks to follow. Shane Mullins, chief executive of Nottingham-based Fiscal Engineers, said: “At best, rewards should focus more on the outcomes that consumers are seeking and expecting and at worst, be simply benign. The danger is in taking things too far and stifling competition in very competitive corporate environments.”
