IFA Market Has Yet to be Convinced Over RDR and Generic Advice Proposals
For immediate release: 18 February 2007
Less than one in five IFAs say a generic advice system will improve the take-up of savings products
IFAs confirm the importance of incremental qualifications
The independent financial adviser (IFA) market has yet to be convinced over the benefits of the changes to the UK advice market as suggested in the Retail Distribution Review and generic advice proposals, according to new research by Unbiased.co.uk, the website promoting the benefits of independent financial advice.
Unbiased.co.uk surveyed over 250 of its member IFAs and found that less than one in five (16%) of IFAs believe generic advice proposals will lead to an increase in the take-up of savings products by consumers. Whilst the majority (61%) thinks it will have no impact, almost a quarter of IFAs (24%) believe a generic advice model will lead to a decline in the take-up of savings products.
Unbiased.co.uk’s survey also suggests that IFAs welcome the apparent FSA U-turn on linking the word independent in independent financial adviser to remuneration methods rather than to whole of market advice. When questioned about the impact of the FSA’s Retail Distribution Review (RDR), three in four IFAs (75%) state that the original proposal would have a negative impact on consumers’ understanding of the term independent in the context of independent financial advice. Less than one in ten (7%) believe consumers’ understanding would have been improved.
IFAs however were in favour of increasing the level of qualifications amongst their profession; 74% state that it is important to hold incremental qualifications over and above the current benchmark.
David Elms, Chief Executive of Unbiased.co.uk said, “We have seen a multitude of different views and opinions on the future shape of the UK financial advice market over the last six months. We have always maintained that the term independent must be linked to whole of market advice to help consumers understand the concept of truly independent financial advice.
“There have been various proposals for raising the qualifications benchmark to diploma level and this survey appears to show that there would be support from IFAs for such a move. Looking forward, the debate needs to focus on the nitty gritty of creating transparent payment options for consumers that apply on a level playing basis across all distribution types.”
-ends-
For further information please contact:
David Elms | Anna Schirmer/Jonathon Grove |
Chief Executive | Lansons Communications |
Unbiased.co.uk | 020 7294 3682 |
020 7833 3131 |
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For expert comment or case studies from over 200 media-friendly IFAs, journalists should call Unbiased.co.uk’s Media Services hotline on
020 7294 3682 or search online at www.unbiased.co.uk/media
1. Independent Financial Adviser Promotion
Unbiased.co.uk is the consumer brand of IFA Promotion, the organisation established in 1989 to promote the value and accessibility of independent financial advice to the public. It represents around 9,000 firms of independent financial advisers across the UK, incorporating over 17,000 registered individuals. These individuals hold over 22,000 incremental qualifications which are each individually verified by the awarding body. IFA Promotion welcomes the prominent display of incremental qualifications and further developments into the credentials of independent financial advice.
IFA Promotion is sponsored by 28 leading financial institutions, and in the past 12 months, over 575,000 consumers and businesses used unbiased.co.uk to find local independent financial advice.
IFA Promotion believes Independent financial advice should be:
- Affordable. The option to take independent financial advice should be available, by right, to all- not just the wealthiest in society.
- Convenient. IFAs should be available in the location of the consumer’s choice, wherever they live in the UK.
- Transparent. It must be clearly transparent to consumers who is able to offer independent financial advice and who is not.
2. Independent Financial Adviser Promotion’s sponsors
Abbey for Intermediaries
Lincoln Financial Group
Aberdeen Asset Management
Lutine Assurance Services
AEGON Scottish Equitable Plc
National Savings & Investments
Alliance Trust
New Star Investment Funds
AXA Life
Norwich Union Life
Bright Grey
Prudential
Canada Life Ltd
Scottish Life
The Children’s Mutual
Scottish Life International
Clerical Medical Investment
Scottish Widows Plc
Defaqto
Skandia UK Group
Friends Provident
Standard Life Assurance Company
The Hartford
Tomorrow
Invesco Perpetual
Unum
Legal & General
Zurich Intermediary Group
Registered Office: IFA Promotion Ltd, 90 St. Vincent Street, Glasgow G2 5UB. Registered in Scotland: No. 114606