In the third of a series tracking what the consumer press is communicating about the Retail Distribution Review (RDR), the Telegraph led with the demise of ‘free advice'.
This series follows our round-up of what RDR-related material has appeared so far in the consumer media. You can read that HERE.
The Telegraph accepted the impact of the RDR was not really understood by consumers, having only been widely reported in the specialist press so far.
Doing its bit to educate readers, the paper suggested readers may be "in for a shock" at the end of the year if they are used to getting ‘free' advice.
What is the consumer media writing about RDR
Beyond the attention-grabbing headline and opening, the piece did succinctly explain the RDR changes, including details about the move away from commission, the raising of professionalism standards and the difference between independent and restricted advice.
However, one section which may have concerned advisers was the way in which it explained how consumers will pay for advice.
"Going to a financial adviser will land you with an upfront bill, which many will find unpalatable.
"Advisers will argue that you would have paid this amount in the form of charges, but it is a big switch for many consumers to make."
The paper also provided evidence suggesting many people might be put off paying for advice, while it also predicted a growth in interest in execution-only services.
>>Find out what the Sunday Times said about the 'dirty secrets' of financial advisers HERE < <
Meanwhile, it explained why those who have bought their investments and pension products before RDR-implementation may lose out.
"The person providing your investment will still pay 'trail commission', which is paid out annually to the financial advice firm that arranged the product's sale," it said.
"However, that firm will not be able to provide any more advice on a commission basis, so you could be paying for something you can't get any more."
This article continues...
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress