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ABI Key to RDR success is simplified advice

A new ABI survey has revealed that over half of people may not be prepared to pay for financial advice, and a third thought such advice would be worth less than £300.  The research, commissioned by the ABI, asked over 2500 people about their attitudes to financial advice.

 

While the ABI is supportive of the overall aims of the Retail Distribution Review (RDR) for delivering good outcomes for consumers and building trust in financial advice, it is also important that all consumers can access financial advice, some of whom may not need or cannot afford full advice.

 

Helen White, the ABI's acting Director of Life and Savings, said:

 

"The results of our research send us a strong message about what consumers need: to fill the gap between paying for full financial advice and havng none.

"Our research revealed that many consumers would only pay up to £300 for full financial advice, whereas this service currently costs on average £670.

 

"For the RDR reforms to deliver good outcomes for consumers and the industry we need to both convince sceptical consumers that full advice is worth paying for and also come up with a model of simplified advice for those consumers who cannot afford or do not need full financial advice.

 

"Our customers are telling us what they want and we are looking at how we can provide it. We hope that the FSA and other regulators will help us deliver on this."

 

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Last updated 01/07/2016