The survey by research group Platforum shows that 45% of European investors say they are self-directed but in reality only 29% are.
The findings mean that 37% of investors who say they run their own investments have in fact paid for advice.
Platforum said the problem was centred around Europe’s bank-driven investment advice structure, and the findings called the quality of advice received into question.
Unlike in the UK, where the RDR outlawed commission kickbacks for intermediaries several years ago, Europe continues to operate rebate structures that can be poorly disclosed to clients.
Platforum said the problem was worst in Italy and Spain, where 57% and 56% of investors said they had used advice – and paid for it – after previously identifying themselves as self-directed.
“Our research indicates that investors don’t value the advice they are receiving in their local bank,” said Heather Hopkins, head of Platforum.
“It also suggests a low quality and intensity of advice, lacking the rigorous (and memorable) fact finds that advised investors typically endure.”
