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CII: RDR could help turn 14 million to financial advice

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CII: RDR could help turn 14 million to financial advice

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.'

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