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Man versus machine: will advisers lose out to exec-only after RDR?
by Amy Rowe on Nov 30, 2012 at 14:48
Will the retail distribution review transform the advice market, making it too expensive for many investors and forcing them use execution-only services? Bestinvest and YouGov surveyed investors in an effort to find how they felt about advice and execution-only, and what the post-RDR landscape might look like. Click through here to view the results.
Self directed investors versus personalised advice
Just how many investors will turn to self directed investing in the New Year? A survey conducted by BestInvest with YouGov asked around 2,000 investors how they planned to organise their finances post-retail distribution review (RDR), and how often they planned to review their portfolios.
Here we look at some of the results of the survey, which was conducted to coincide with the launch of BestInvest's online self investment tool, Free Investment Report Service & Tool (FIRST).
Which of the above statements best describes your overall view of your main adviser/broker?
Most investors thought their adviser provided a useful or even vital service. However, 10% said they could do a better job going it alone.
Out of women surveyed, 6% believed they could do a better job handling their investments, compared to 11% of men asked.
Which statements describe how much you trust the advice provided by your main adviser/broker?
Just under half of respondents believed advice received was impartial (42%) and 11% gave complete trust over to their adviser.
A total of 19% thought advice might be biased.
Attitudes to using the internet to manage investments
Face to face is still the best way of doing business, even if it's done alongside internet tools, according to the survey.
While respondents said they found the web useful for conducting their financial affairs, 48% said they liked to speak to people as well, while 11% said they only wanted to receive advice in person.
Attitudes to using an advisers if you have to use explicit fees to do so
Most investors said they would be happy continuing to use personal advice alongside self direct tools, pointing towards a marriage of the two.
A total of 36% of respondents said the dawn of self directed advice would not impact their relationship with their advicer, providing fees were 'acceptable.'
Alternative sources of financial information to an adviser
Should people not be able to use a personal adviser, most said they would instead turn to the internet (71%) for advice, or financial magazines (67%).