An overwhelming 96% of respondents believe that the current proposals for stakeholder products will not increase consumer demand.
The Government’s desire to limit charges made by providers could be highly counter productive if the charge cap is too low to encompass financial advice for the majority of the population. As a result, 64% of IFAs feel that the government should help fund advice for those people who cannot afford it and will not realistically receive it under a 1% charge cap.
Furthermore 95% of IFAs warn that guided self-help will fail for the majority of people, with 64% of IFAs believing that fewer than 10% of consumers could make investment decisions based on ‘guided self help’, and a further 31% believing this figure is between 10 and 25%.
Charlie Musson, Public Relations Manager, The Exchange, comments:
“Experience shows that consumers are largely apathetic and need the stimulus of an adviser to help them make decisions. Currently savings contracts are not compulsory and this research reinforces the fact that these types of product are going to have to be pro-actively sold to most people and the charge cap must take this into account.”
