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Most advisers will not dump mass-market clients

Research by the FSA shows the majority of advisers plan to continue advising clients with savings and investments of up to £75,000.

A survey carried out by the regulator of almost 1,500 retail investment advisers found 63 per cent are looking to retain clients with savings and investments of between £20,000 and £75,000 post-RDR. Some 20 per cent say they do not intend to advise any clients with this level of investment, while the remainder say they do not know.

When asked whether they plan to continue advising clients with savings and investments of less than £20,000, 44 per cent of advisers say they do not intend to advise these clients. Some 38 per cent say they will retain these clients, with the remainder saying they do not know.

The FSA will publish its full RDR readiness research next month.

FSA head of investment intermediaries Linda Woodall says: “We are encouraged to see a large number of advisers plan to provide advice to people with smaller pots to invest. It is important that a range of services will be available for consumers once the changes to financial advice come in.”

Thameside Wealth director Tom Kean says: “From the sounds of it, the FSA has not provided enough context to the question it asked advisers. Any sane business will look at each and every client and ask whether that client has business potential in the long-term, and if that is the case they would be wise to hang on to them.”

The FSA’s findings follow research published by Deloitte earlier this month which estimated up to 5.5 million customers will stop using, or will lack access to, advisers post-RDR as a result of adviser charging.

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