A third (33%) of those surveyed would be prepared to adapt their business model to provide investment services to people with relatively low amounts to invest.
A further 44% are open to considering adapting their business model depending on the outcome of the review. Only one in five (22%) would not be prepared to adapt their business model.
24% said there is nothing the government or regulator can do to encourage them to work with clients who have under £30,000 to invest.
However around two in five (43%) would welcome a relaxation in regulations that would make it more profitable to offer advice to those with less than £30,000.
Intelliflo’s research indicates that there are many advisers who are happy to service clients with fairly modest investment amounts. More than half (56%) say they will accept clients with less than £50,000 available for investment, with over a third (37%) saying they have no minimum amount.
More than two in five (44%) require a minimum of £50,000, with almost one in seven (15%) requiring in excess of £100,000 as a minimum amount.
Conversely, a recent SBG survey found that less than one in 10 (8%) financial advisers would consider launching a new solution to support lower wealth consumers over the next year
Discussing commission, 44% are not opposed to a reintroduction. More than a third (36%) said they thought it may be a good idea but it would depend on which products it relates to and how it has to be implemented and almost one in 10 (8%) said they thought it was a very good idea.
Just over a quarter (27%) said they think it is a bad idea for commission to be reintroduced and would be a backward step for the image of advisers.
Around a quarter (23%) said they were unconvinced the reintroduction of commission would be in the best interests of consumers.
Discussing their biggest hopes about the outcome of the review, around one in five (21%) would welcome a shift to imposing financial penalties on providers rather than advisers.
Over a quarter (27%) are unhappy at the way the government/the regulator keeps changing the rules about how advisers can run their businesses.
Two thirds (66%) of respondents hope the review takes into account how much of a financial burden there currently is for advisers and removes some of it.
Over half (51%) hope the review simplifies the way advisers can operate and allows for more flexibility in how advice can be given by advisers.
However over half (55%) fear that all the hard work required for the RDR will be wasted should a return to commission be announced in the review.
Two in five (41%) welcome the review but are concerned that it is being rushed. But 4% fear that the review may be the last straw for them and will make them decide to give up being an adviser.
Nick Eatock, Intelliflo’s Executive Chairman, commented:
“There’s been plenty of speculation about what might happen as a result of this government review and advisers are naturally anxious about what regulations may be introduced that will once again affect the way they can do business. However, I’m pleased to see that there is so much willingness to adapt, particularly in relation to technology. The new simplified advice service, often referred to as robo-advice, we’re launching later this year will go a long way to helping them service lower resourced clients in a highly cost efficient way.”
