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IFAs are urged to convince public of value of advice

Chartwell chief executive Craig Wetton is calling for IFA firms to do more to convince consumers that there is value in advice.

Wetton says clients are often confused about the difference between fees and commission and thinks firms need to do more to sell their service.

The comments came as fee-based Chartwell published its guide to impartiality which spells out that financial advice is never free and that clients want assurances that advice is objective. Chartwell believes that clients want a highly qualified experienced adviser who will provide effective follow-up services.

Chartwell thinks that fees serve clients best since all the costs are highlighted from the outset and that they can then benefit from commission savings.

Wetton says: “There is a feeling from some consumers still that financial advice should be free or that it is something they can do themselves. This is not true. You only have to look at the decisions that have been made to realise how difficult it is. There is a cost to advice and we can do a lot more as an industry to make sure that clients know this. That means placing a value on it.”

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