Consumers continue to put their faith in IFAs

CONSUMERS CONTINUE TO PUT THEIR FAITH IN IFAs FOR ADVICE ON PROTECTING THEMSELVES AGAINST THE HOUSING SLUMP AND VOLATILE MARKETS

·        Unbiased.co.uk’s Advice Drivers report shows a massive increase of 50% in requests for independent financial advice on mortgages in the first quarter of 2008 relative to the previous three months

·        UK consumers continue to support independent financial advice by requesting advice on investment (up by 33%) and specific investment products (up by 62%) on the final quarter of 2007

New figures from Unbiased.co.uk, the find an Independent Financial Adviser search, reveal that the number of consumers seeking independent financial advice on mortgages and investment rose dramatically in the first quarter of 2008 relative to the previous three months.  Increased demand in these two product areas resulted in 30,000 more people using the ‘Find an IFA’ service in the first three months of 2008, than in the final quarter of 2007; an increase of nearly a third (31%).

Unbiased.co.uk’s Advice Drivers report demonstrates once again consumers’ commitment to independent financial advice, with Unbiased.co.uk receiving over half a million requests for details of local IFAs in the last 12 months. As the housing market has begun to slow, consumers have continued to put their faith in IFAs to advise them on how to finance their home loans. The number of consumers seeking advice on mortgages has risen by nearly two thirds over just three months, with nearly 30,000 people requesting details of a local IFA to advise them on mortgages in the first quarter of 2008.

The Advice Drivers report also highlights consumer demand for advice on investment and also specific investment products such as ISAs and Unit Trusts. These product areas showed greater uplift in the last few months than in the same “ISA season” in 2007, reflecting consumers’ faith in IFAs to guide them through choppy markets as we are currently experiencing.

David Elms, Chief Executive of Unbiased.co.uk, commented:

“Our latest report demonstrates that when economic conditions are unpredictable, consumers seek independent financial advisers as their guides through hazardous markets. Consumer needs are constantly changing and whole-of-market IFAs are the best-positioned of all advice types to serve these needs.”

The figures reveal an increasing level of demand for advice on personal protection and also a fall in requests for advice on equity release and expatriate services relative to the last quarter of 2007.

The top ten Advice Drivers in the first quarter of 2008 were as follows:

 

 

Top ten Advice Drivers: Jan - Mar 08*

Requests for IFAs

% of total

1

Personal Retirement Planning

47,454

31%

2

Investment & Savings

38,832

25%

3

Mortgages

29,535

19%

4

ISAs/OEICs/Unit Trusts

15,086

10%

5

Stakeholder Pensions

12,947

8%

6

Taxation Planning

10,211

7%

7

Personal Protection

8,378

5%

8

Investment Trusts

4,677

3%

9

Equity Release

4,763

3%

10

Saving for Children

4,538

3%

TOTAL (All drivers)

138,732

 

The report is compiled on a quarterly basis from comprehensive data collected as a result of individual consumer selections made when requesting details of a local IFA through Unbiased.co.uk.

*IFA Promotion figures using consumer searches on www.unbiased.co.uk NB: more than one product area can be selected

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 search for IFAs with incremental qualifications, specific payment options, or state a preference to see a male or female IFA.

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

 

 

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 29 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:

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