Tuesday, 27 November 2012 10:44
Public's RDR perception remains low says Defaqto
The public's perception of the upcoming RDR remains low according to Defaqto.
The firm, a sponsor of the IFP's Financial Planning Week, has conducted a survey of over 150 financial advisers on RDR-readiness.
Some 60 per cent of advisers felt the general public was unaware of the RDR changes while 40 per cent believed the public was aware but did not understand how it would affect them.
Even among those who were already receiving financial advice, only half of advisers said they believed their clients understood the payment changes. Some 80 per cent of advisers said they felt they would need help explaining the changes to clients while 60 per cent said they needed help explaining the new advice structure.
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David Cartwright, Defaqto's head of insight, said: "There appears to be a limited awareness of the RDR among the general public, which could indicate there is still a lack of engagement between people and longer-term Financial Planning.
"This certainly needs to change to ensure that people take the necessary steps to secure their financial future."
Nick Cann, chief executive of the IFP, said: "Given the higher level of qualifications that advisers are required to obtain, coupled with a Statement of Professional Standing, the consumer can have greater confidence in getting advice they can trust by seeking out Accredited Financial Planning Firms or CFPCM professionals.
"These can offer a genuine Financial Planning service which will add considerable value to their clients."
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The firm, a sponsor of the IFP's Financial Planning Week, has conducted a survey of over 150 financial advisers on RDR-readiness.
Some 60 per cent of advisers felt the general public was unaware of the RDR changes while 40 per cent believed the public was aware but did not understand how it would affect them.
Even among those who were already receiving financial advice, only half of advisers said they believed their clients understood the payment changes. Some 80 per cent of advisers said they felt they would need help explaining the changes to clients while 60 per cent said they needed help explaining the new advice structure.
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David Cartwright, Defaqto's head of insight, said: "There appears to be a limited awareness of the RDR among the general public, which could indicate there is still a lack of engagement between people and longer-term Financial Planning.
"This certainly needs to change to ensure that people take the necessary steps to secure their financial future."
Nick Cann, chief executive of the IFP, said: "Given the higher level of qualifications that advisers are required to obtain, coupled with a Statement of Professional Standing, the consumer can have greater confidence in getting advice they can trust by seeking out Accredited Financial Planning Firms or CFPCM professionals.
"These can offer a genuine Financial Planning service which will add considerable value to their clients."
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