The RDR could have the unintended consequence of "disenfranchising" the majority of consumers from financial advice and thereby undermine the proposal's main aim, Scottish Widows says.
It warns the RDR could score an own goal because forcing advisers to switch to a fee-based model will limit access to advice to the better-off only - thereby defeat its prime objective. "Our key concern is the RDR proposals will act to drive advice upmarket, with financial advice becoming the preserve of the wealthy leaving mass-market consumers un-served," says Robert Kerr, head of retail distribution development at Scottish Widows. Research conducted by Widows suggests more than half of consumers (54%) would be less willing to pay a fee for advice, with four-fifths saying they ...
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