A survey by AFH Wealth Management found that 16% of respondents understand the need to have a financial adviser but, shockingly, don’t trust them.
A further 12% said they are more involved in the decision-making process as they do not have faith in the advice they receive.
A question of trust
It’s not all bad news, however, as 46% of investors said they feel confident in the advice they are given if their IFAs are being honest with them.
The release did not specify whether the honesty related to fees and charges or another aspect of financial planning.
That is followed by 41% who value how familiar their adviser is with their personal financial situation and 37% who look at their past performance.
And good advice is also crucially important to investors, as more than three-quarters (77%) would switch adviser if they felt they were not receiving good value for money.
Among this group, 16% had already done so.
But 7% said they would be loyal to their current adviser and 5% believed it would be too much of a hassle to switch.
Give people confidence
Alan Hudson, chief executive of AFH Wealth Management, said: “In order to demonstrate the value of proper advice, it is crucial that advisers understand exactly what investors want. Top of this list is honesty, be it about fees, charges or investment performance.
“As investors become increasingly discerning with a greater propensity to switch and new advice models enter the market, the value and effectiveness of face-to-face advice will continue to be challenged.
“We, as an industry, must demonstrate value and give investors confidence in the actions we take and decisions we make.”
