Demand for IFA investment advice declining, report claims

Demand for IFA investment advice declining, report claims

Investors are increasingly going direct to product providers to make investments rather than via an independent financial adviser, with predicitons suggesting that this trend will continue, according to a report.

Those using advisers to make investment have declined over the past year to 21 per cent, figures from the UK D2C Guide: Consumer Insights Report suggested.

One in three investors said they have a preference for investing directly from the provider, with 31 per cent opting to invest through platforms.

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Conducted in November 2015, the survey polled 1,966 respondants across the UK.

However the data has drawn scepticism from advisers.

Colin Parkin, IFA at Ample Financial Service, sceptical of the report. He said: “This is not something that I have seen personally, although there are always people who will want to go direct to the providers.

“Some people may do this, because they think they can save money. Whether they can get impartial advice and a better deal at the end of it will depend on their negotitaing skills, but I would really have to question these results.”