Axa Wealth chief executive Mike Kellard has warned that not enough is being done to make consumers aware of how financial advice will change after the RDR.
Speaking to Money Marketing, Kellard compared the current lack of consumer publicity around the RDR with the lack of information about polarisation when it was introduced in 1986.
He says: “When polarisation came out, it probably took 10 years for consumers to understand the difference between a direct salesperson and an IFA. We are going to do something equally as dramatic and there are no plans to publicise it.”
Kellard is concerned that clients will not know the difference between IFAs and restricted advisers. He says: “They will not know that advisers are better qualified or that the charging structure has changed to be more explicit, with no opportunity to be hoodwinked by hidden charges. Without knowing all of that, their perception will not change.”