This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
MM+cover+small+241014
Categories:Regulation

Public have double the faith in IFAs than banks

  • Print
  • Comments (1)

FSA research reveals IFAs’ clients are almost twice as likely to feel very confident about the advice they have received than those who see a bank adviser.

It conducted face-to-face interviews with 2,064 adults for its latest consumer awareness survey, published last week. It finds 17 per cent had received professional financial advice about a financial product in 2011. Of those that sought advice, 47 per cent saw an IFA, 41 per cent saw a bank or building society adviser and 12 per cent used other sources of advice such as accountants or solicitors.

When asked how confident they are the advice is appropriate to their circumstances, 61 per cent of those who saw an IFA say they are very confident the advice was suitable but that dropped to 33 per cent for banks and building societies.

The FSA says: “The reason for the difference could be due to the nature of the relationship, with greater continuity of knowledge and person alisation by an IFA than a bank or building society and the demise of the ’personal’ bank manager.”

The FSA notes the total proportion that were either very confident or fairly confident about the advice given was around 90 per cent for both channels.

Axxis Financial Planning director Owen Wintersgill says: “Since the credit crunch, the reputation of the banks is even worse than it was before. “I am surprised there is not a more significant difference in the confidence scores between IFAs and banks, especially since so many banks have closed branches or withdrawn their salesforces.”

  • Print
  • Comments (1)

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Readers' comments (1)

  • Should not the findings of this research ~ which hardly reveals anything not already well known to all and sundry ~ prompt a re-prioritisation of the FSA's focus of its regulatory firepower? Of course it should. But will it? Don't hold your breath.

    Unsuitable or offensive? Report this comment

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Should Sesame unwind the 'pay to play' deals it set up as part of its restricted advice panel?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments