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Apfa research: One in five advisers offering simplified advice

One in five advisers are offering simplified advice services, research suggests.

A survey of 250 advisers carried out by Apfa shows 21 per cent already offer simplified advice and a further 25 per cent plan to do so in future.

Of those who currently offer simplified advice, 83 per cent said it is provided by a fully qualified adviser.

Of those planning to offer the service, 35 per cent said they would use face-to-face delivery, while 51 per cent said they would use a combination of channels.

The research, which was carried out in December and January, also found that 54 per cent of advisers had turned away at least one client in 2013.

Of those who did so, 37 per cent said it was because they felt the client’s requirements did not justify the cost of the service. The most common type of advice that turned away clients were seeking was pensions (55 per cent), followed by Isas (44 per cent) and protection (8 per cent).

Apfa director general Chris Hannant says the number of advisers turning away clients is a “concern” and that simplified advice offers a potential solution for lower value clients.   

But he says the FCA needs to lower regulatory costs and provide greater clarification on simplified advice to encourage more advisers to offer the service.

He says: “The industry is being resourceful in exploring ways it can deliver advice to a broader market, but we also need to see the regulator doing everything it can to streamline bureaucracy, so that the cost to advisers of giving advice is minimised.

“We also need greater clarity on what the FCA means by simplified advice – and whether the focus should in fact be on focused advice.”

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