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YouGov: less than one in 10 consumers aware of RDR
by Jun Merrett on Oct 09, 2013 at 08:04
Less than one in 10 consumers are aware of the retail distribution review (RDR), according to research carried out by YouGov.
YouGov surveyed 2,000 UK adults in September 2012 and again in February 2013 to determine the impact of the RDR on consumers.
Speaking at the Tax Incentivised Savings Association platform seminar, Simon Mottram, financial services consulting director at YouGov, said the results of the survey suggested consumers have not dramatically altered their attitudes towards advice since the regulatory reform came into effect.
'Most consumers professed little understanding, fewer than one in 10 are aware of the RDR,’ he said. ‘Only half of those aware became aware from their IFA.'
Mottram said the survey showed that there had been an increase in the proportion of consumers willing to pay for financial advice through an annual fee, from 7% in 2012 to 12% after the RDR.
He also said wealth managers, or firms which offered wealth management type services, were more likely to benefit from the RDR.
'The big winners are advisers who offer wealth management services alongside advice, like private banks or stockbrokers. Being able to manage wealth means you can benefit from the changes of RDR,’ he said.
'IFAs are losing out to wealth managers; there is a notable shift away from using IFAs when arranging investment products.’
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