Mortgage News
Five million advised clients orphaned by bank exits, study suggests
The number of previously-advised customers who no longer have a financial adviser following widespread regulatory changes may be as large as five million, a report suggests.
Some 3m adults have stopped using an adviser in the past year, following a decline of two million in 2012, according to the latest annual ComPeer/JGFR Financial DIY report.
The study defines a financial adviser as either an IFA, bank adviser, wealth manager, stockbroker or accountant or solicitor offering advisory services.
It has extrapolated its results from a survey of 1,005 over-16s carried out in December last year.
Banks have seen the biggest exodus of clients, the report finds, after many “abandoned” financial advice during 2013.
There is little change in the proportion of people citing an IFA as their main financial adviser year-on-year, despite the changeover to RDR.
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The report suggested that, while more people appear to accept charging for investment advice, only 6% value financial advice sufficiently to pay £100-£200 an hour.