With the FCA’s latest consultation on the Advice Guidance Boundary Review (AGBR) closing this month, a new survey reveals optimism among advisers for the proposals – potentially driven by expectations that demand for their services will rise.
Two in five (40%) IFAs think that easier access to personalised advice will lead more people to seek advice from them or their firm. Just 10% feel the proposed changes will result in a decrease in demand for advice, while 43% don’t expect to see any change.
Overall, IFAs are positive about the potential impact that the AGBR will have for clients.
They agree that access to targeted pension and investment support will increase client confidence in managing investments and personal pensions (36%), increase interest in investing (38%), encourage clients to move money into investments (33%), and help clients to better plan their financial futures (43%).
However, IFAs are less convinced that targeted support will spark a shift in clients exploring more complex investments products. Only 23% think the changes will encourage clients to explore more sophisticated investments, while a third (33%) disagree. Similarly, 21% think that it will encourage clients to take more risks with their investments – whereas 32% disagree this will be the case.
Alexa Nightingale, global head of financial services research at Opinium, commented: “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.”
