(PRWEB UK) 29 October 2011
Almost two out of three (65%) investors admit they would stop using the services of an IFA if they began charging by the hour according to new research* from Legal & General Investments, one of the UK’s largest investment providers.
Those with a higher value investment portfolio, for example those with an investment portfolio worth over £200,000, are marginally less likely to turn away from IFAs post-RDR, while those with a smaller portfolio would choose not to take paid for advice.
The research from Legal & General Investments echoes sentiments across the industry and follows the findings of Legal & General Investments recent What Matters Investment Index, which revealed that more than half of IFAs (57%)** expected to see a rise in DIY investors in the next 12 months.
Simon Ellis, Managing Director, Legal & General Investments, said: “We already know that IFAs are expecting to see a rise in DIY investors in the next 12 months. Our research now shows that consumers are planning to stop using the services of IFAs altogether if they begin charging by the hour, which supports the assertion that the total cost of investing for a consumer will go up in the post-RDR world.
“The implications for both the industry and consumers cannot be underestimated. Investors run the risk of eschewing advice due to its cost which could severely affect the investment decisions they make. The benefit of good quality, independent advice can be invaluable when considering your investment portfolio, especially in today’s volatile market. There is room in the market for both advised and non-advised sales. However, we cannot risk pushing consumers towards the latter by necessity rather than by choice.”
PR Manager – Investments
020 3124 2092
*Figures from YouGov Plc. Total sample size was 2,024 adults that have invested in Unit trusts and/or investment trusts and/or Equity ISAs. Fieldwork was undertaken between the 30th of August and the 01st of September 2011. The survey was carried out online.
**Figures are from YouGov Plc. Total sample size was 195 IFAs. Fieldwork was undertaken between the 6th and the 16th of May. The survey was carried out online.
Notes to Editors:
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
1) Legal & General Investments offers a range of unit trusts for professional advisers and wealth managers. The Legal & General Group is one of the largest investors in the UK, managing more than £370 billion (as at 30 June 2011) for our clients.
Registered Office: One Coleman Street, London, EC2R 5AA
Registered in England 1009418.