It analysis suggests that poor service costs advisers an average of 8,000 a year. This adds up to an annual loss of around 208m for the UK’s 26,500 IFAs.
FIS questioned 200 IFAs, and 21 per cent rate the service they receive from life and pension providers as appalling. While 62 per cent say service has worsened in the last 12 months.
Thirty per cent say, based on past experience, they expect to wait a week or more for information from a product provider.
Business development director William Watling says instead of addressing the problem in the long term, providers are opting for short-term solutions.
He says: “Many providers are opting for bolt-ons – IT solutions that may address their current needs but over the long term might only add to their system spaghetti and customer servicing problems.”
Derbyshire Booth Financial Management managing director Greg Heath says: “The service from life and pension providers must improve to enable IFAs to compete after depolarisation. The alternative is that poor service and dwindling commission rates will drive IFAs to focus efforts on the more affluent groups.”