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Unlucky for some: 13 slides on how RDR will affect demand for advice

The introduction of adviser charging will alter the behaviour of consumers and financial advisers, leaving about five and a half million clients without advice. Deloitte surveyed more than 2,000 UK adults to understand when consumers are more likely to opt out of receiving advice and when they will seek higher levels of service post the retail distribution review.

Demanding more

Deloitte surveyed more than 2,000 UK adults to understand when consumers are more likely to opt out of receiving advice and when they will seek higher levels of service post the retail distribution review (RDR).

Click through these slides to Deloitte’s research on delivering investment products in the post-RDR world...

Approximately half (46%) of those who bought savings and investment products believed they did so through financial advisers.

Of those 13% did so through an IFA, with 17% going through a bank.

This table shows the percentage of UK adults who have purchased a financial products by their savings level.

Deloitte points out that IFAs already occupy a more ‘upmarket’ space and are most active in the mass market customer segment.

Customers with more than £50,000 in savings were twice as likely as those with less than £50,000 to continue using financial advisers, the study reported.

Deloitte found that less than 2% of customers who have taken multiple forms of advice would be willing to pay a one off fee of £300 or more to an adviser. But 9% of IFA customers and 14% of those using accountants or solicitors are willing to pay that level of fee.

Deloitte found 27% of individuals were likely to opt out of advice and 32% said they would rather do their own planning, research and administration, as a result of the RDR.

Over a quarter of the respondents said they would go directly to the product provider, while 24% said that they would reduce use of advisers to a more transactional basis.

For a more detailed look at the report click here.