View the article online at http://citywire.co.uk/new-model-adviser/article/a659501
CII: RDR could help turn 14 million to financial advice
by Jun Merrett on Feb 18, 2013 at 09:38
The retail distribution review (RDR) could lead to 14 million consumers seeking financial advice, according to the Chartered Insurance Institute (CII).
A CII survey of 2,010 consumers conducted in January, found that there were 14 million consumers who could afford to invest and might want to receive advice if the benefits of the RDR were better communicated.
The research showed that the 14 million consumers had not previously taken financial advice due to a lack of trust, a preference to use other sources, had not considered advice or had been self-advising.
The CII also said that around five million people who had previously dismissed financial advice were now reconsidering it because of the RDR.
The survey showed that only half the customers who have received advice know about the changes brought about by the RDR.
Laurence Baxter (pictured), head of policy and research at the CII, said more needed to be done to tell the general public about the RDR.
'Although there has been progress since 2011, a better communication plan is needed if the market is really going to benefit from improved public trust and confidence which was a central objective of the RDR.
'Our research has revealed a great opportunity for financial planners among the unadvised population, to the tune of five-14 million new consumers over time.
'It must not be forgotten that the impact of the RDR has and will be significant, but the end result will be a financial advice market that is more professional and trustworthy, with higher qualified advisers providing more transparent services and remuneration practices.'
News sponsored by:
Today's top headlines
- Sunday Papers: BoE to launch inquiry over forex fixing claims
- Saturday Papers: Independent Scotland would lose UK's AAA rating, warns Citigroup
- FCA issues warning against US firm targeting UK investors
- Nest director John Taylor exits after 12 months
- FCA set to simplify adviser charging reporting rules
More about this article:
More from us
- CII launches securities qualification
- CII in redundancy talks; post RDR exam lull set to hit revenues
- CII urges advisers to tap auto-enrolment opportunity
by Himanshu Singh on Mar 09, 2014 at 04:54