Network firms see opportunity in simplified advice sector
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Network members are more interested than other IFAs in offering a low-cost mass market service, according to research from Technical Connection.
The company commissioned 100 interviews with advisers who were either qualified to QCF level four or will be within a year, to find out their expectations of how the advice market will look in 2013.
Advisers were asked whether they felt there was an opportunity to service less-affluent clients with a low-cost service, perhaps on an execution-only basis.
Network members showed the most support for a mass-market service, with 67 per cent saying they see offering a low-cost service as an opportunity.
Forty-eight per cent of directly authorised sole traders and 36 per cent of DA small adviser firms also saw the low-cost market as an opportunity. Only 33 per cent of national IFAs agreed.
Overall, just over a third of advisers thought there was an opportunity to service less wealthy clients.
Research firm So Here’s the Plan carried out the interviews. Speaking at the Personal Finance Society Tomorrow’s Client conference in London last week, managing director Phil Wickenden said: “Network members seem to have the biggest appetite for this but, overall, there does not seem to be much interest.”
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