10 Million Find Advice Too Expensive

There are 23 million investors in the UK managing their own portfolios - while some are comfortable DIY investing, many have been priced out of the advice market

Emma Wall 28 August, 2014 | 4:50PM

Eleven million investors consider financial advice too expensive and have fallen through the ‘advice gap’ following industry regulation.

The Retail Distribution Review (RDR), introduced in January 2013, set out to promote transparency in the financial advice industry. RDR bans advisers from taking commission for selling products, instead instructing that all fees, paid only by clients, had to be agreed in advance.

In the past, advisers would not charge clients for advice, instead earning commission from asset managers for selling their products. Despite this creating a biased advisory environment, some investors prefer not to have an upfront cost for financial advice – as this prices them out of the advice market.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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