More than 90% of advisers doubt the Retail Distribution Review will have any impact on the quality of consumer advice, according to Fidelity International.
Fidelity’s research, conducted after the RDR conference on 27 June, uncovered a "hostile" attitude towards the FSA’s proposals among advisers.
The survey of over 500 firms discovered 95% of advisers thought the term ‘independent’ should refer to those who select products from the entire market, as opposed to the FSA’s proposal to classify advisers who offer a fee system as ‘independent’.
IFAs also reported around 90% of their clients would prefer to pay for advice via a commission structure than through upfront fees.
One adviser comments: “The emphasis on commissions being in some way wrong and cheap products being the best is misguided.
"When was the last time you purchased a car because it was the cheapest to buy and maintain?”
Many respondents to the survey were also worried they might have to gain additional qualifications despite having many years of experience.
The average age of an adviser is now 57 years, which means that many IFAs might be better off taking early-retirement rather than gaining new qualifications.
Peter Hicks, head of the IFA channel at Fidelity, says: “We believe that the aims of the FSA are laudable but our concern, which mirrors that of the advisers responding to the survey, is that this paper may have the opposite effect of that intended, leading to further dilution of the independent label and greater confusion for consumers."
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