More than half of advisers are willing to seek more mass market business if the FSA can provide incentives to do so.
A recent Adviser Glasgow survey reveals 57% would target the mass market if provided with a simplified regulation framework, with 60% of those IFAs expecting half of their business to come from the general consumer.
However, 71% believe the ‘mass affluent’ market represents their strongest future growth opportunity.
Clancy’s Financial Planning principal Jim Clancy says he understands why the majority of advisers target clients with £100,000 of liquid assets and above.
“To try and cater for those with £50,000 or less in liquid assets is difficult for advisers,” he says. "I don’t think financial advisers can do it and how it is done I don’t know.”
Clancy says he is willing to help anyone who seeks advice, but the current regulatory framework throws up barriers to the adviser proposition.
“I understand where the FSA is going with TCF and the like, but it cannot be ‘one size fits all’,” he says.
“Financial advisers who work on fees are understandably looking after clients who are able to have yearly financial reviews. There is a danger for mass market consumers when you sell a one-off solution that a long way down the line it could be seen as not suitable for the client and you get in trouble for mis-selling.
“If you sell a product there has to be something to say that this is a one-off solution and clients need to come back and see you or another IFA if their circumstances change.
“At the end of the day I would like to help people, but the FSA has got to help me.”
* The Adviser Glasgow exhibition will take place on the 6 March at the SECC in Glasgow.
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