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Public give commission the thumbs-up

Most consumers are happy to pay for advice through commission and understand that the word independent means getting advice on the whole market, a survey for IFA Promotion reveals.

The BMRB research for IFAP shows 60 per cent are happiest to pay for financial advice by commission, rising to 70 per cent for families in the lower socio-economic income group D. Across the board, only 7 per cent preferred fees.

Forty-five per cent of consumers say independent adv-isers not owned by providers are their main source of adv-ice as they are most likely to recommend the right pension.

The second favourite source of advice are advisers from banks or building societies at 17 per cent.

A specialist IFA firm owned by a financial institution was favoured by only 4 per cent.

The survey was conducted in March among a sample of 1,100 adults nationwide.

IFAP chief executive David Elms says: “Across all socio-economic groups, there is an understanding that independent means offering access to the whole market and a preference for commission.

“We want to see a definedpayment system that reflects how consumers want to pay for advice.

“As they stand, the proposals make it difficult for IFAs to remain IFAs, which will lead to consumers&#39 access to advice being reduced.”

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