A Mori poll commissioned by Fidelity Investments has found that most current users of IFA services w...
A Mori poll commissioned by Fidelity Investments has found that most current users of IFA services would consider switching advisers if their current adviser was turned into an Authorised Financial Adviser, AFA, or went multi-tie as a result of de-polarisation.
Fidelity says this is further evidence that the FSA is barking up the wrong tree in its push to tie remuneration with the issue of independence.
"A flaw in the FSA's current thinking is in trying to redefine independence around remuneration," says Rob Fisher, Head of IFA marketing for Fidelity Investments.
"Our view is that consumers simply don't think like that. They believe independence comes from a combination of adviser competence, clear disclosure, sound business ethics and personal integrity. It does not come from how they pay to get all of those things."
Crucially, says Fidelity, the survey found that most investors did not like the idea of having to pay for independent financial advice, with the level of unwillingness rising as incomes fell.
This would indicate a serious problem squaring the FSA circle in terms of its commitment to expand the availability of advice: the Fidelity survey figures suggest people do not want to pay for financial advice, which means IFAs - or whatever they will be called - will not do business with the government's target group.
Fidelity says 31% of respondents would pay up to £100 per hour for advice, but 53% said they should not have to pay fees at all.
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