A survey of more than 2,000 people conducted by the management consultancy claimed the number of high net worth (HNW) individuals using an IFA has fallen by 50% since the credit crunch.
AT Kearney also claimed that since 2008, the proportion of HNWs using direct channels to manage their finances has increased from 60% to 80%.
Neil Dennington, a principal at AT Kearney, said: “There is an ever-increasing amount of information freely available on the internet which removes the appeal of an IFA in some cases.
“With the retail distribution review (RDR) set to transform the IFA industry, a legacy of mis-selling of certain financial products and a greater abundance of execution-only platforms , it is no surprise we are seeing a move away from the traditional client-IFA relationship model.
“Astute IFAs have wisely recognised the client’s desire for more direct access to their portfolios as well as execution-only platforms and are developing these online portals to cater for this.”
