A year on from the shake-up of the financial advice market by the Financial Services Authority (FSA), having independent advice remains important to 90 per cent of people. But, while 72 per cent believe they saw an IFA last year, IFA Promotion deems this 'a dream scenario, but far from reality'.
Of the 6.6 million people who saw an adviser in the last 12 months, 10 per cent think they saw a multi-tied adviser and 13 per cent believe they took advice from a tied adviser.
David Elms, chief executive of IFA Promotion, commented: “Our annual research confirms that nearly twice as many people end up taking advice from a bank or building society as see an independent financial adviser, although most clearly prefer the concept of independent financial advice. We’ve put well over half a million people in touch with an IFA this year, but would clearly welcome broader support to educate consumers about their options.
“However, only 27 per cent of people who have taken financial advice in the last year actually feel they know the difference between the three different types of advice. Given this widespread confusion, there has never been a more important time to relay to consumers the benefits of seeking whole of market, independent financial advice, and most importantly, how to find it.”
Glenn Brophy, IFA and partner at Integrity Financial Management, said that: consumers tended to believe independent advice was far more expensive. “Initially, people have the concept that they have to pay a high fee to get independent advice and that it’s a luxury. As most of our business comes through referrals, it endorses the popularity of getting independent advice.”
