A consumer survey assessing awareness of the financial advice
market changes, and the potential benefits of this market.
In 2011, the CII conducted a survey assessing public
understanding of the RDR changes.
This new report, reflecting survey work conducted just after the
RDR came into force, updates these findings shows that at least 5.3
million consumers who had previously rejected advice may reconsider
it as a result of the changes.
- Awareness of the RDR changes has increased since 2011
but still more work is needed: about a third (32%) of
those who have never received advice are aware of the
professionalism changes under the RDR, up from about a fifth (19%)
in 2011. Among those who have received advice, just half know about
the professionalism changes, compared to two-thirds (64%) who are
aware that advisers can no longer take commission.
- Financial situation and the desire to self-advise are
the main reasons people haven't received advice: about
half cite financial situation (35% do not have the money to invest
plus 16% cannot afford an adviser). Of the rest, a fifth chose the
self-advising option introduced in this year's survey, 16% have
never really thought about financial advice, and the rest were down
to lack of trust (7%) or a preference for other sources (6%).
- Knowledge of the RDR changes among the unadvised
population could bring at least 5 million new customers to this
market: just over a third (36%) said they might or would
definitely consider financial advice in the light of the RDR. This
equates to 5.3 million new customers. But this could rise to as
many as 14 million, taking into account the others who self-advise
or do not trust the market.
- Advised customers are very positive about the
RDR: 61% think the RDR will improve their confidence in
advice. This percentage increases by 5% for women; and by 10% for
those aged 25-44.
View the attached document »
See our previous report, published in 2011:
The Money Advice Service, financial capability and the Retail
Distribution Review »