The IFA is a “doomed species” which will suffer at the hands of an increase in demand for free, electronically delivered advice, according to Liberal Democrat Treasury spokesman Lord Newby (pictured).
Money Marketing asked Newby, who was speaking at a fringe event at the Liberal Democrat conference in Liverpool today, what role IFAs have in the future of financial services.
He said: “The traditional model of the IFA looks to me like a doomed species. I think there will be a drift away from old fashioned financial advice.
“The regulatory requirements on IFAs are so great, the cost of giving advice is so great and I cannot image why anyone would want to do it. It just looks to me really, really hard.”
Newby said his children’s generation would seek advice almost exclusively online.
He said: “I do not think they would want to go through the appalling business of laying out all their details and taking an hour to go through everything the way we did when we were buying financial services products.
“I hope people do take financial advice but they will want it free and they will want it delivered electronically.”