Almost half of advisers continue to service clients with less than £50,000 but many admit to doing so at a loss, new research suggests.
Aviva’s latest Adviser Barometer, which surveyed 1231 advisers in September, found that 46 per cent of advisers polled work with clients with less than £50,000, while 36 per cent have no minimum investment level. A further 19 per cent require clients to have a minimum of £50,000 to provide pension and investment advice.
Over 55 per cent of advisers said they had seen no significant change in the number of active clients post-RDR, with 28 per cent seeing an increase and 17 per cent seeing a decrease.
When asked what was the main source of new clients, 52 per cent said it was due to new clients to the market, 29 per cent said it was due to picking up former clients of other advisers, and 20 per cent said it was due to picking up ex-bank and building society advice customers.
Some 59 per cent of advisers have adopted a combined charging structure based on initial and ongoing charges based on the level of investment, and 83 per cent of advisers polled have chosen to provide independent advice.
Some 48 per cent of those polled reporting concerns over regulatory levies, up from 44 per cent last year.
Skerrits head of investment Andy Merricks says: “The writing has been on the wall for quite a while for less wealthy clients and the RDR has finished off the idea of good advice for all. Those clients who can’t or won’t pay the fees will probably end up missing out.”