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Poll shows Car could drive out advisers

Seventeen per cent of advisers will move to a sales model if customer-agreed remuneration becomes mandatory and 11 per cent will leave the industry, according to Standard Life research.

Its survey on the RDR shows that 56 per cent of advisers will shift to a Car model while 12 per cent have already moved to fees and 4 per cent remain unsure what they will do.

Head of distribution policy Peter Jolly says: “We believe an emotive reaction from some respondents to the perceived loss of commission as a source of income may have been responsible for higher numbers suggesting they would exit the industry or revert to the sales model proposed by the RDR.”

Of 346 advisers questioned, half do not believe that consumers would be willing to pay a fee for financial advice.

Derbyshire Booth Financial Management managing director Greg Heath says: “Less affluent clients may not be able to afford to pay fees. Some people who currently get advice will drop out of the market.”

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