Investors Fail to See Value in Paying for Advice

A third of investors refuse to pay for advice since the Retail Distribution Review - despite using an IFA in the past

Emma Wall 5 August, 2013 | 5:23PM
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Investors are turning their backs on advisers - thanks to new regulation intended to ensure the fair treatment of clients. 

The Retail Distribution Review (RDR), which came into effect at the beginning of this year set out to promote transparency in the financial advice industry, but is having an adverse effect on investors, according to a new research conducted by GfK.

The survey revealed that although financial advisers are expecting to see a drop in the number of clients willing to pay up front for their services, they estimate they will only see a 14% decline - falling far short of reality.

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About Author

Emma Wall  is former Senior International Editor for Morningstar