Some 40% of IFAs say that clients are more confused on the difference between independent and restricted advice than they were before the implementation of the Retail Distribution Review (RDR), according to research released today.
Consumer ratings website VouchedFor questioned 223 IFAs during a recent survey, and found that in addition to the 40% that had seen increased confusion, only 11% had seen an improvement in clients' understanding of the difference between the two types of advice.
VouchedFor founder Adam Price said: "While it appears that RDR will be beneficial to IFAs, our members have found that the new legislation has increased investor confusion when it comes to understanding the basic terminology.
"We strongly believe that offering independent advice is beneficial to the investor and urge our IFAs to make sure that they clearly explain the benefits to existing and potential clients."
He added: "Looking at the bigger picture it is important that the whole financial services profession continues its work to educate consumers about the UK financial adviser model post RDR.
"IFAs have had to jump through hoops to maintain their status, not to mention the on-going administrative difficulties associated with the changes, and it's vital that their USP over restricted advisers is promoted to the public."
Paul Bruns and Elaine Parkes
3,000 left to transfer
Record numbers of people aged 90 plus
From 3 to 10 October