ISA season resurgence drives 22% increase in demand for independent financial advice
In the first quarter of 2006, IFA Promotion (IFAP), the organisation promoting the benefits of independent financial advice, handled 62,363 searches for independent investments and savings* advice, a surge of 22% compared to the same time frame last year. This is the lead finding of IFAP’s Advice Drivers quarterly report, based on an analysis of 171,534 requests for details of local IFAs, handled by IFAP between January and March.
The third of IFAP’s reports, compiled from the comprehensive data on the selections people make when requesting a local IFA, also helps answer the question, ‘What difference did A-Day make’?, revealing that year-on-year appetite for independent retirement planning advice grew by 53%; thus indicating that this month’s far-reaching reforms did, in the end, have a marked impact on consumer behaviour.
Of the 66% consumers seeking product-led independent financial advice via IFAP, the top ten advice drivers last quarter were as follows:
Top ten advice drivers: JanMar 06 | Requests for IFAs | % of total | |
1 | Personal Retirement Planning | 56,132 | 33% |
2 | Investment & Savings | 41,474 | 24% |
3 | Mortgages | 30,253 | 18% |
4 | Personal Stakeholder Pensions | 15,905 | 9% |
5 | ISAs/OEICs/Unit Trusts | 15,123 | 8% |
6 | Taxation Planning | 14,500 | 8% |
7 | Personal Protection | 9,666 | 6% |
8 | Investment Trusts | 5,768 | 3% |
9 | Saving for children | 4,675 | 3% |
10 | Equity Release | 4,522 | 3% |
Source: IFA Promotion (NB: More than one product area can be selected)
David Elms, Chief Executive of IFA Promotion, commented, “There is good news to report on several counts. Firstly, this year’s boom in ISA sales was fed by a thriving demand for independent financial advice. Secondly, the approach of A-Day finally prompted thousands of people to review their retirement provision, with the help of an IFA focussing on this area.
“While pensions, savings and investments remain key triggers for people to seek independent, expert advice, it’s great to see that demand for IFAs’ services is surging across a range of other areas, from mortgages to financial protection.”
Consumers can obtain details of local IFAs who focus on specific product areas by visiting www.unbiased.co.uk or by calling 0800 085 3250. They can also select IFAs with additional qualifications, certain payment options, or state a preference to see a male or female IFA.
For further information please contact:
Chief Executive Lansons Communications
IFA Promotion 020 7294 3674
020 7833 3131
*Calculations based on Investments & Savings, ISAs/OEICs/Unit trusts and Investment Trusts enquiries
Fig 1 Advice Drivers: Q1 2005 vs Q1 2006
IFA Selection Criteria | Jan-05 | Feb-05 | Mar-05 | Jan-06 | Feb-06 | Mar-06 |
Personal Retirement Planning | 24% | 23% | 25% | 35% | 32% | 31% |
Investment & Savings | 20% | 23% | 25% | 26% | 22% | 24% |
Mortgages | 21% | 20% | 22% | 17% | 18% | 18% |
Personal Protection | 7% | 9% | 8% | 6% | 6% | 5% |
ISAs/OEICs/Unit Trusts | 8% | 9% | 11% | 9% | 7% | 10% |
Personal Stakeholder Pensions | 7% | 6% | 6% | 9% | 10% | 9% |
Taxation Planning | 6% | 5% |