Two in five independent financial advisers (IFAs) believe that the Financial Conduct Authority’s Advice Guidance Boundary Review will lead to greater demand for their services, according to new research.
Opinium’s latest IFA Barometer found that 40% of advisers think easier access to personalised guidance will prompt more people to seek advice from them or their firms. Only 10% expect demand to fall, while 43% anticipate no change.
The findings come as the FCA’s consultation on the review closes this month. The proposals aim to make targeted pension and investment support more widely available, sitting between full regulated advice and generic guidance.
Advisers are generally upbeat about the benefits for clients. The survey found that 43% believe the changes will help clients to plan their financial futures, 38% think it will spark greater interest in investing, and 36% expect an increase in confidence when managing investments and pensions. A third said it could encourage clients to move more money into investments.
However, IFAs are more sceptical about whether the review will lead to greater uptake of complex products. Just 23% think it will encourage clients to explore more sophisticated investments, while a third disagree.
Similarly, only 21% believe it will prompt clients to take more investment risks, compared with 32% who disagree.
Alexa Nightingale, global head of financial services research at Opinium, said: “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.”
