UK insurance giant Axa’s latest Big Money Index found one in four UK consumers were willing to pay for financial advice – the same number as before the RDR was implemented.
David Thompson, managing director of Elevate, Axa Wealth, said: “[The study] would suggest pre-RDR concerns that consumers would be less willing to pay for financial advice as it became more ‘transparent’ seem to have been unfounded.
“The number has remained consistent over the past 12 months, suggesting the RDR has not damaged the industry as some commentators may have feared.”
The report found the wealthier segments of the population remain the most likely to turn to professional financial advisers (46% of the “exclusive lifestyles” category and 38% of those categorised “successful security”).
However, Axa said “it was good to see that” 25% of young professionals are also happy to pay for financial advice.
“A core aim of the RDR was to establish financial advice as a profession akin to solicitors or accountants, and while it is still relatively early days and the longer-term impact of the RDR is yet to be fully realised, this research is a reassuring early indicator,” added Thomson.
“As economic uncertainty and financial pessimism continue, consumers are willing to pay for professional financial advice to help make the most of the money they have. It will be interesting to see how this trend develops, as the effects of the RDR begin to bed in over time.”
