IFAs have overwhelmingly given their backing to the current polarisation regime, acc ording to a survey by IFA the Lighthouse Group.
Its research found that 98 per cent of IFAs believe the Government's plans to relax polarisation will cause confusion and clients will not rec eive appropriate advice.
The survey questioned 160 IFAs in England and Wales during November and Decem ber. The results suggest chan ges to polarisation could not have come at a worse time with 96 per cent of IFAs rep orting a growth in demand for independent advice within the last five years.
The IFA sector is unhappy with the Government over proposed changes to polarisation, believing it will create more red tape. Eighty-nine per cent of IFAs estimate administration and compliance takes more than a third of their time at the moment and 78 per cent say they feel “bogged down” with that aspect of their business.
Looking at competition in the personal finance sector, the research says 84 per cent of IFAs are unconcerned about competition from fund supermarkets as they believe their products are bought as part of a complete package. But 90 per cent say they must focus on adding value through advice as many basic products become cheaper and easily available through other channels.
Lighthouse sales and marketing director Nick Hamson says: “If the polarisation proposals were shelved for one year, the picture would then become clearer and therefore a more informed decision could be made.”