Consumers reject financial advice fees

man-walking-with-shadowMany people would refuse financial advice if they were charged for it, a survey found, just as charging is due to replace commissions in the UK adviser market. A survey of more than 2,000 people for Deloitte, an accounting firm, found more than half of all consumers (54%) would refuse financial advice if charged a fee. It also found that 84% of people were unaware of the Retail Distribution Review (RDR) which is scrapping commissions for financial advisers and replacing them with fees from 31 December this year. Additionally, nearly half (47%) would be likely to reduce the number of times they use financial advisers if charged a fee of between £400-£600 (€511-€766), or 3% of invested assets. Attitudes to paying for advice vary according to wealth and where consumers take advice. Only 3% of people with no savings would be prepared to pay a fee for advice; 14% of people with savings above £50,000 would be prepared to pay a fee. Andrew Power, lead RDR partner at Deloitte, said: [As a result of the findings] the advice gap – the shortfall between the amount of advice required and that provided – is likely to increase as advisers leave the industry or focus on wealthier customers.” ©2012 Funds Europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.