Two in five (40 per cent) independent financial advisers (IFAs) believe the Financial Conduct Authority’s (FCA’s) Advice Guidance Boundary Review will boost demand for their services.
This was according to a new study by Opinium, which revealed optimism among advisers for the proposals – potentially driven by expectations that demand for their services will rise.
Opinium’s latest IFA Barometer, based on an online survey of 200 UK IFAs, indicated that just 10 per cent feel the proposed changes will result in a decrease in demand for advice, while 43 per cent don’t expect to see any change.
Overall, IFAs were positive about the potential impact that the regulator’s review will have for clients.
Respondents believed that access to targeted pension and investment support would increase client confidence in managing investments and personal pensions (36 per cent), increase interest in investing (38 per cent), encourage clients to move money into investments (33 per cent), and help clients to better plan their financial futures (43 per cent).
However, IFAs were less convinced that targeted support will spark a shift in clients exploring more complex investments products.
The study found that 23 per cent think the changes will encourage clients to explore more sophisticated investments, while a third (33 per cent) disagree.
Similarly, 21 per cent thought that it would encourage clients to take more risks with their investments – whereas 32 per cent disagreed this will be the case.
Opinium global head of financial services research, Alexa Nightingale, commented: “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 Advice Guidance Boundary Review recommendations are finalised and implemented, it will be interesting to see whether these expectations play out.”
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