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Conversion to fee-charging big challenge for advisers

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  • 27/10/2010
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Conversion to fee-charging big challenge for advisers
A survey suggested 64% of people think financial advice is free, which remains the biggest obstacle for advisers when fees become mandatory in 2012, said Aviva.

Graham Clarkson, executive director from The Tenet Group said the key message for clients is the value added during the advice process.

“But this is a really hard message to get across when we’ve spent so long hiding these costs,” he said.

At the Aviva round table, ‘The changing face of financial advice – ‘What is the value of an IFA for consumers?’ a survey suggests 83% of advisers think consumers come to them for the personal relationship and face-to-face contact.

“But if this is the case, why do the same advisers say the same consumers won’t pay fees?” asked Danny Cox, head of advice at Hargreaves Lansdown.

“This suggests a lot of IFA s aren’t used to demonstrating value and charging for it. IFA s need to add value and that needs to be paid for,” said Cox.

Robert Sinclair, director of AIFA and AMI said the separation of the manufacturing, distribution and advice channels will make it easier for consumers to understand the value of advice and fee-charging.

“We also need to be good enough to call ourselves a profession. This is critical. At the moment, we keep seeing the negatives and arguing among ourselves,” he said.

 

 

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