The company believes that a fundamental step-change is required in order to make financial advice more accessible to the majority of people in the UK, and that significant changes are required in the industry if this is to be accomplished.
Chris Williams, CEO of Wealth Horizon, launched the manifesto, saying:
“Financial advice has a more vital role than ever to play following changes to pensions rules, but accessibility remains poor.
"The traditional ways of accessing advice are now looking strained, with a need to access advice online and over the phone increasingly vital in this digital age we live in. However, at the core of the problem is a lack of education. Investors know they need to save for their retirement, but they don’t know how to go about doing so.
"Many therefore go it alone, but DIY investing has many pitfalls and without detailed knowledge about investments many consumers end up losing out and investing in unsuitable products, or not investing at all.
“These are real issues that need to be addressed and rectified, especially in light of the new pension freedoms. If everyone has greater access to pension pots, they also need greater access to advice, and the industry’s job is to highlight the increasing breadth of routes they can now take.”
The five-point manifesto argues that advice should be more widely accessible, responsible, good value, simple and easy to understand, and allow for greater freedom to evolve the industry.
Williams added:
“There is a widespread epidemic of firms offering 'guidance' rather than advice. The simple truth is that some investors do not understand the difference and assume that all information and guidance is given with their best interests at heart. This isn’t always the case and yet there are those out there that will play to this weakness in the system. The industry and the regulator need to come together to ensure clients understand the benefits of receiving regulated and responsible advice.
"Advisers should not work to one set fee, but adapt their costs according to the service that they provide. It should be a right for people to access sound financial advice at a decent price – if it’s not affordable, this only serves to widen the advice gap.
“While understandable, the past cannot, and should not, be used as an excuse for slowing down the evolution of our industry. If financial advice does not evolve with the changing needs of its clients then it might as well pack up shop now. Yes there is a need for strong regulation, but not at the expense of being able to move with the times.”
