In Defaqto’s latest survey of 165 financial advisers, 39% said they believe that the general public are aware of the new regulatory regime but do not fully understand its implications.
Of those that say they require assistance explaining the changes to their clients, 83% wanted help clarifying the changes to how advice will be paid for, while 63% would need assistance in communicating their new advice structure.
The research follows the results of another survey, released last week by Opinium, which found that less than half of advisers have informed their whole client base of the impending changes to their charging structure.
The FSA’s own research found that 89% of advisers say they will remain in the industry post 31 December, with only around 1% likely to retire.
David Cartwright, Defaqto’s head of insight, said: “Our findings indicate that a high proportion of people that are actively engaged with the financial advice process are focused on long-term financial planning. It is clear, however, that a significant minority of these individuals do not understand the impact that the RDR will have – and it is apparent that many advisers would benefit from support to educate their clients.
“More worryingly, there appears to be a limited awareness of the RDR among the general public, which could indicate that there is still a lack of engagement between people and longer-term financial planning and the financial advice process. This certainly needs to change to ensure that people take the necessary steps today to secure their financial future.”
