7th May 2013
IFAs are reporting a surge in demand for their advice according to research by Vouchedfor.co.uk, a site designed to allow consumers to rate their financial adviser.
Of 223 advisers surveyed it says 97% of IFAs reported taking on new clients since the advent of RDR with 40% of those investors completely new to taking financial advice.
The survey suggests that 38% of IFAs have reported an improvement in new client acquisitions based on the same period in 2012 with over 50% reporting no change. Some 81% of IFAs had not lost a single client since RDR despite predictions that clients would reject adviser charging.
Vouchedfor says that of the IFAs that had lost clients only one associated the loss of a client with the new regulations. The firm says two things are making IFA services more appealing. It says fee transparency has made independent advice easier to understand and increased trust while the closure of so many bank advice services has started to flood the market with consumers needing advice. Vouchedfor says that with bank closures as many as two million could be left without advice.
This research suggests that one in seven new IFA clients this year had switched from a bank advice service. A figure that is likely to continue to grow as more of the closures come in to effect.
Adam Price, founder of VouchedFor.co.uk, says: “Knowing who to trust when it comes to investing is an age-old quandary and rather than alienating investors fee transparency has actually helped IFAs to stand out from the crowd. With 97% of IFAs reporting taking on new clients since the advent of RDR, and 40% of those investors completely new to advice, it is hard to argue that RDR has been the death knell to the industry that many had predicted.”
“It is not surprising that people appreciate a more up-front and honest approach. Although the new legislation has begun to demystify fees and started to build trust, deciding which adviser to approach with your savings remains very difficult which is why we started VouchedFor.”