Concerns have mounted that the RDR’s ban on commission payments from groups such as fund managers will adversely impact the mass market. One recent study argued that about 5.5m people could become ‘advice orphans’ once the review comes into force on 1 Jan 2013.
A survey carried out by the regulator, and seen by The Sunday Times, discovered that 63% of advisers aim to retain clients with savings and investments of between £20,000 and £75,000 in the post-RDR world.
Furthermore, some 38% of respondents said they hope to continue working with clients with less than £20,000.
Linda Woodall, head of investment intermediaries at the FSA, told the newspaper: “We are encouraged to see that a large number of advisers plan to provide advice to people with smaller pots to invest.
“It is important that a range of services will be available for consumers once the changes to financial advice come in.”
Recent research by professional services firm Deloitte claimed 11% of UK adults – or the equivalent of 5.5m customers – would be unwilling or unable to pay for financial advice, raising fears that sections of the market could be unserved after RDR.
The poll also found that another 56% of clients would reduce their use of financial advisers if they were charged a fee of between £400 and £600.
