People have little awareness of the Retail Distribution Review (RDR) despite grasping the importance of financial planning, research has found.
Defaqto's latest survey has shown 36% of advisers do not believe their clients understand how they will be paying for financial advice from 1 January.
Some 60% of the representative sample of 165 advisers polled, meanwhile, claim the general public are completely unaware of the legislation change and the impact it will have.
The research added 39% of advisers believe the public are aware of the RDR but do not fully understand its implications.
Yet a higher proportion of advisers (83%) said their clients are focused on long-term financial planning and understand the importance of financial planning (89%).
Nick Cann, chief executive of the Institute of Financial Planning, commented: "Financial advice has never been free but the RDR means that from January, the cost of advice will have to be made clear to consumers at the outset.
"Given the higher level of qualifications that advisers are required to obtain, coupled with a Statement of Professional Standing, the consumer can have greater confidence in getting advice they can trust by seeking out Accredited Financial Planning firms TM or CFPCM professionals.
"These can offer a genuine financial planning service which will add considerable value to their clients."
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