A survey of more than 2,000 people for consultancy Deloitte by YouGov found that 60% of bank customers would reject paying a fee for advice compared with 12% of independent advisers’ clients.
However, more than half of those asked (54%) would refuse financial advice entirely if charged a fee, according to the survey.
Deloitte did not disclose the questions it asked the participants.
Under rules to be implemented on 1 January next year, financial advisers are no longer permitted to receive commission from product providers for selling their products.
Instead, they must agree a fee with their customers before they provide any services.
Today’s tied or multi-tied advisers – those contracted to only recommend the products of certain providers – are to be called ‘restricted’ advisers under the new rules, which are to be introduced following the Retail Distribution Review (RDR). Most bank advisers will be restricted.
Seb Cohen, head of insurance research at Deloitte, said: “Deloitte’s research highlights how consumers generally are unwilling to pay a fee for advice, but the figures vary between channels.”
Other findings:
- 84% of people are unaware of RDR and that consumers will pay a fee for advice when RDR is implemented on 31 December 2012;
- 47% would be likely to reduce the number of times they use financial advisers if charged a fee of between £400-£600 or 3% of invested assets;
- Only 3% of people with no savings would be prepared to pay a fee for advice; 14% of people with savings above £50,000 would be prepared to pay a fee.
