Advisers predict RDR will push clients back to direct sales

Of the 57% of advisers who think DIY investing will rise, 62% believe providers will increase the number of direct-to-consumer products in response.

Around eight in ten IFAs responding to the L&G What Matters Investment Index survey said consumers would buy unsuitable investments as a result of DIY investing.

Almost a third said the move to direct investing would increase complaints to the Financial Ombudsman Service, and a third said their own businesses would suffer.

"I would not be surprised if private investors turn to the internet more as the place to research and buy funds," said Simon Ellis, managing director of L&G Investments.

"The challenge for providers and advisory firms is to decide whether they wish to participate in this developing market, and if so to ensure consumers make well-informed decisions."

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