An overwhelming 96 per cent of IFAs say the Government's stakeholder proposals must contain provision for advice if they are to increase demand.
A survey of 500 IFAs conducted by The Exchange reveals 64 per cent of IFAs believe that less than 10 per cent of consumers will be able to make investment decisions based on “guided self-help”, and a further 31 per cent believe the level to be between 10 per cent and 25 per cent.
Only 5 per cent of advi-sers say that at least half of savers would be able to make investment decisions after following the proposed guided self-help filter.
The Exchange says the Government's desire to limit product provider charges could be counter-productive if the charge cap is too low to encompass financial advice for the majority of the population.
Sixty-four per cent of IFAs feel the Government should help fund advice for people who cannot afford it and who will not realistically receive advice under a 1 per cent cap.
The Exchange public relations manager Charlie Musson says: “Experience shows that consumers are largely apathetic and need the stimulus of an adviser to help them make decisions. Currently, saving contracts are not compulsory and this research reinforces the fact that these types of product are going to have to be proactively sold to most people and the charge cap must take this into account.”