Two in five IFAs believe the FCA’s proposed shake-up of the advice-guidance boundary will increase demand for their services, according to Opinium’s latest IFA Barometer.
The survey, published as the regulator’s Advice Guidance Boundary Review consultation closes this month, found 40 per cent of advisers expect easier access to personalised advice to drive more clients through their doors. Just 10 per cent predict a fall in demand while 43 per cent foresee no change.
Advisers are also upbeat about the impact on clients. Many believe that targeted pension and investment support under the proposals will boost confidence in managing investments and pensions, spark greater interest in investing, encourage more money to be moved into investments and help people plan their financial futures more effectively.
But the profession is less convinced that the reforms will push clients towards more complex or riskier investment behaviour. Only 23 per cent think they will encourage exploration of sophisticated products with a third disagreeing while 21 per cent believe clients will take more risks as a result compared to 32 per cent who expect no such change.
The FCA’s review aims to close the gap between regulated advice and guidance, a move advisers hope will expand access without undermining consumer protection.
Opinium global head of financial services research Alexa Nightingale says: “Given the potential that client demand and engagement will increase, it’s no surprise that our latest data shows that IFAs are largely positive about the Advice Guidance Boundary Review. Advisers expect more people to seek help navigating their financial choices, which is undoubtedly positive for both them and clients. However, many are cautious about whether clients will embrace more sophisticated investment options as a result. Once the AGBR recommendations are finalised and implemented, it will be interesting to see whether these expectations play out.”
