A total of 95% of IFAs say customer-agreed remuneration (CAR) will be important to future business with solicitors and accountants, according to a Winterthur survey.
The survey of more than 100 IFAs follows the FSA’s Retail Distribution Review (RDR), which outlines plans to separate advice from product costs in a customer-agreed process.
Winterthur says CAR would help advisers build client trust in a business that increasingly needs solicitors and accountants. The survey shows 65% believe CAR would help build trust with clients if introduced while another 69% say it would help promote the value of their advice.
A total of 81% believe CAR would help demonstrate their independence from providers and reduce the perception of provider bias.
Nick Lee, head of marketing and value added services, Winterthur, says: "With our continuing focus on treating customers fairly (TCF), Winterthur welcomes clear communication and processes for customers to help them make informed decisions.
"By holding regular educational forums for discussion with the financial community, we can work together to help remove barriers for consumers and improve the professional perception of the industry."
The survey follows ABI research in January, which shows the introduction of CAR would lead 5% of existing customers investing more money and 15% visiting their adviser more often.
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