Five-and-a-half million people will opt out of receiving advice as a result of the Retail Distribution Review (RDR), presenting a "major" opportunity for providers to step in to service them, according to a report by Deloitte.
From 31 December this year, advisers are no longer permitted to accept commissions from product providers for recommending retail investment products. Instead, as a result of the RDR, a charge for advice will have to be agreed upfront with the customer. But, with advisers - tied and independent - required to disclose charges, customers may be "surprised" by the cost of advice and seek greater control over what they pay and to whom, the Deloitte report concludes. "After many years of receiving 'free' advice, or advice which appeared to be free as a result of a commission-based adviser ...
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