RDR has little impact on public trust of advisers

Business-General-Handshake-Hire-Appointment-700x450.jpgConfidence in the advice sector since the introduction of the Retail Distribution Review has remained static among unadvised clients, new figures from the Personal Finance Society show.

The PFS surveyed 2,030 people in March to gauge if they had confidence and trust in the professional financial advice sector. It compared its results to a similar survey conducted in 2013.

The survey filtered out 859 respondents who knew they could not afford advice, don’t make investment decisions, or do not have funds to invest. 

This left 1,171 respondents and of this group 445 were advised and 726 were unadvised.

Of the unadvised respondents, 18 per cent said said they had confidence in the advice sector – the same proportion as 2013.

However, confidence among customers who do use an adviser has increased from 43 per cent in 2013 to 60 per cent in 2016.

Advised women accounted for the biggest positive shift in confidence with an 18 percentage point increase compared to 13 percentage points for advised men.

Across both advised and non-advised people those who said they trusted financial advisers rose from 32 per cent to 34 per cent.

The PFS plans to conduct a similar survey later this year to track progress.

PFS chief executive Keith Richards says: “As a profession we are proud of the work we have done to restore public trust and confidence to engage, and while I acknowledge there is work to be done, professional advice is increasingly being recognised for the vital role it plays in retirement planning in the wake of recent pension freedom changes.”