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Consumers prefer independent advice, research shows

Consumers prefer independent advice rather than restricted, Chris Smallwood has said.

The chief executive of 2plan Wealth Management was speaking after his firm published research which showed 50 per cent of people based their choice of adviser on whether they were independent or not.

Mr Smallwood said: “This research clearly indicates that independence is a deciding factor when it comes to choosing a financial adviser.

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“It’s important that consumers understand the distinction between independent and restricted advice.”

The research also showed 56 per cent of those who were asked how they would find a new financial adviser said they would ask a friend or family member for a recommendation, while 42 per cent said they would ask a professional and 31 per cent said they would use a website.

2plan is an IFA-only network which is based in Leeds.

Adviser view

Vivian Slattery, director of London-based independent Monetary Solutions, said: “I don’t think customers necessarily understand what the difference is because it is new terminology.

“Generally speaking, if advice is restricted you know it will be restricted to certain companies, and if the charges are the same you are better off having an independent adviser.”