Lack of employee awareness of RDR implications

Published on

Only 21% of employees are aware that as of 2013, people will have to pay for advice when speaking to an independent financial adviser, according to new research from Canada Life Group.

While overall consumer awareness of RDR is low, awareness is slightly higher amongst men, with 25% of men aware of these changes compared to 19% of women.

Once the upcoming changes were explained, 49% of employees predicted that fewer people will go and visit a financial adviser as a result. The 41-50 and 51-60 age groups in particular felt that people would not be prepared to pay for financial advice unless the value was clearly outlined, with 53% in agreement.

This comes despite the fact that 15% feel that due to upcoming changes such as auto-enrolment, they will need financial advice more than ever. In addition, 13% would like access to a financial adviser from their employer, demonstrating that advice is seen as important.

Meanwhile, 25% of employees believe that they do not earn enough to seek financial advice.

“At a time when financial advice is likely to be more important than ever before, almost half of employees predict people are less likely to visit a financial advisor once RDR comes into effect,” said Paul Avis, sales and marketing director at Canada Life Group Insurance.

“This suggests that advisers still have a great deal of work to do explaining RDR to customers and clearly outlining the value of advice.

“Inevitably, some clients will object to paying for guidance, so intermediaries may wish to look at sections of the market which have not been hit with this legislation as they adjust their business models.”

Latest POLL

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...

Atom bank breaks Near Prime record

Atom bank has reported another record-breaking month for Near Prime activity. Over the course of...

Berkeley Alexander appoints new BDM

General insurance provider Berkeley Alexander has announced the appointment of Grant Robinson as a...

Other news

Lenders must step up on high LTV products

Things are on the up for borrowers with a smaller deposit. The financial information...

Square 1 Media announces May Mortgage Market Debate

Square 1 Media is to hold its next Mortgage Market Debate on Wednesday, 21 May,...

Coventry BS maintains status as one of the best workplaces

Coventry Building Society has been named one of Great Place to Work's UK’s Best...