With the FCA’s latest consultation on the Advice Guidance Boundary Review (AGBR) closing this month, data from Opinium’s independent financial adviser (IFA) Barometer revealed optimism among advisers for the proposals – potentially driven by expectations that demand for their services will rise.
Two in five (40%) IFAs thought that easier access to personalised advice will lead more people to seek advice from them or their firm.
Just 10% said the proposed changes will result in a decrease in demand for advice, while 43% don’t expect to see any change.
Overall, IFAs were positive about the potential impact that the AGBR will have for clients.
They agreed that access to targeted pension and investment support will increase client confidence in managing investments and personal pensions (36%)
38% also thought that the AGBR could increase interest in investing, while 33% believed it could encourage clients to move money into investments (33%).
However, IFAs were less convinced that targeted support will spark a shift in clients exploring more complex investments products.
Only 23% believed the changes will encourage clients to explore more sophisticated investments, while a third (33%) disagree.
Similarly, 21% said that it will encourage clients to take more risks with their investments – whereas 32% disagreed this will be the case.
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.”
