Tue, 18 Jul 06
Independent Financial Advisers are most valued by consumers for their ability to provide impartial financial advice ahead of other factors such as helping save money, a survey by financial research company Defaqto shows.
However the research reveals that nearly two thirds of adults have never visited an independent financial adviser and nearly half do not want or believe they would ever need independent financial advice.
Around 22% of people polled – more than 10 million adults – said if they were to visit an independent financial adviser it would be to receive impartial advice. The next most important reason was to save money on a financial transaction and this was chosen by 12%, around 5.3 million people.
Access to a wider range of financial products than would otherwise be available was chosen by 9% while 7% picked access to better quality research.
Defaqto sales and marketing director Neil Morgan said: "It is a real vote of confidence in IFAs that they are valued for their ability to provide impartial advice ahead of other factors such as saving money. It proves that consumers are getting the message that independent advice is valuable on its own."
"However it is still the case that millions of consumers still do not believe independent advice is appropriate for them and this is a market that IFAs should be trying to reach."
While the research also shows that 46% of adults – more than 21.4 million people – do not want or believe they would ever need financial advice, there is a growing demand for advice with some 6.2 million people planning to visit IFAs over the next 12 months.
More than 2.1 million have paid a fee for independent financial advice over the last two years while another 7.6 million have seen an IFA but not paid directly for the advice.
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