Consumers rate IFAs top in terms of fairness
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Consumers rate IFAs the “most fair” of the financial services professions, according to research by Nottingham University Business School.
The ‘Fairness Index’, produced by the Financial Services Research Forum at Nottingham University Business School, looks at consumer perceptions of fairness with regards to financial services.
The Index takes into account measures including impartiality, familiarity, courtesy and communication.
The Index found IFAs scored 84 out of 100, which is higher than the industry average of 72.
Advisers were followed by building societies with a score of 75, investment companies with 73, life insurers with 72 and general insurers which scored 72.
Banks and credit card companies scored the lowest ratings with just 68 and 63 respectively.
Association of Independent Financial Advisers director general Chris Cummings says the findings provide a strong endorsement of the IFA profession.
He says: “Not only is the profession the most trusted, but it is also regarded as the most fair. This is no mean feat given the recent economic conditions.
Financial Services Research Forum director Professor Nigel Waite says: “When it comes to IFAs, consumers’ perception of fairness is particularly influenced by courtesy, communication and familiarity. It is perhaps not surprising that familiarity should be seen as a significant driver of perceptions of fairness in this context, as a degree of familiarity is crucial to fulfilling the role of an IFA successfully.
“As Government and employers transfer responsibility and risk to individuals, we must encourage consumers to take more interest in their financial affairs. Fair outcomes for consumers will help create a sense of confidence and trust in the marketplace, which will help persuade customers to engage more meaningfully with financial matters.”
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Readers' comments (4)
Anonymous | 16 Dec 2009 10:33 am
This data must be inaccurate.
According to the FSA IFAs are utter rubbish and need regulated out of business!
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Bob Donaldson | 16 Dec 2009 10:49 am
Fanfare beating drums etc etc. We do have a purpose in life Hoorah!!!!!!!!
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Julian Stevens | 16 Dec 2009 10:52 am
And IFA's rate the FSA BOTTOM for fairness, whilst the public almost certainly rate the FSA BOTTOM for competence, and anyone looking at the FSA website would almost certainly rate it BOTTOM for honesty in terms of actually abiding by its own claims for how it conducts itself.
So, TOP marks for IFA's and BOTTOM marks for the FSA. Now there's a surprise.
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Anonymous | 16 Dec 2009 10:55 am
"which will help persuade customers to engage more meaningfully with financial matters.”
Oh Come on! The FSA is going out of its way to make financial advice the preserve of the wealthy.
Good for our practice not good for joe public.
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