New RDR survey
Recently published research by Deloitte about the impact of the Retail Distribution Review has produced some interesting findings.
The main headlines:
o 87% of customers who purchased an investment product via a bank assumed the advice process was free
o 32% of customers would undertake their own financial planning to negate the need for an adviser
o 24% would reduce the number of times they use an adviser
o 5.5m customers who will either cease using an adviser or will lack access to them, 11% of UK adults
o Those with more than £50,000 in savings would be twice as likely to continue using a financial adviser than those with less than £50,000
o Less than 2% of customers would be willing to pay a one off fee of £300 or more
o 9% of IFA customers would pay such a fee
o 14% of those using accountants or solicitors would pay such a fee
The survey found that 46% of 2,000 surveyed individuals that bought savings and investment products over the last three years did so via a financial adviser. However 87% of those clients assumed the advice process was free whilst expressing doubt as to whether they would be comfortable with paying fees of £300 or more.
Deloitte also found that despite IFAs and banks targeting the mass affluent and affluent markets, 3.1m of the 5.5m who would choose to walk away from using advice would fit into such categories.
However any survey depends heavily on the way each question was phrased, with many IFAs already questioning the validity of the findings on numerous industry forums. As ever, the proof of the pudding will be in the eating. Roll on 2013…