The Aegon IFA Insights Survey also found 58 per cent of advisers disagreed that the menu has helped customers understand the cost of advice and the options for paying for it.
Fifty per cent of the advisers questioned say they would use “focused advice” more if the regulations were clearer.
The menu and IDD will no longer be mandatory from November 1 although advisers will still have to communicate in a fair, clear and not misleading way and disclose the basis of their services and commission, including commission equivalence.
The report states: “Although there are mixed views on how useful the menu as been in helping customers understand the cost of advice and ways of paying for it, it is reassuring to see more than six out of ten advisers say they will continue to issue it, and the initial disclosure document, to clients after 1 November 2007 when no longer required to do so.”
An FSA spokesperson says: “Our new investment rules which come into force in November will be principles-based, enabling firms to decide how best to provide consumers with information on how services are to be paid for.
Although firms will still need to provide much of the information required by the IDD/menu, they will have the flexibility to tailor this information to their business model and the needs of their target audience.”