UK financial advisers believe that more needs to be done to promote the value of advice and educate potential clients.
Advice network Openwork surveyed 115 advisers and found 47% believe a government-backed campaign targeting working adults would be effective at promoting the value of financial planning.
The most popular way to promote the value of advice the research found was making it part of financial education in schools, as 65% said more emphasis should be placed on advice as part of financial education in secondary schools.
Over half of advisers surveyed (51%) said financial services trade bodies such as Pimfa and the Association of British Insurers (ABI) should invest more in promoting the benefits of advice.
Some four-in-10 (40%) also said that there should be a mandate in the UK for employers to promote the value of advice to their employees in the workplace.
Willing to pay
This survey comes days after discretionary investment manager Portfoliometrix published a paper designed to help advisers assess, define and articulate the value they deliver to their clients.
In June 2019, Quilter unveiled a similar paper which said that advisers can use a formula to show clients the value of their service.
The survey shows that advisers need to establish why they are necessary, as Openwork’s research found advisers generally find clients are receptive to paying for advice.
Some 65% said their clients are willing to pay for advice when provided with an explanation, while 38% are happy to pay without any explanation.
Just 3% of advisers said they regularly lose clients over fees.
Necessity in pandemic
Mike Morrow, wealth and platform director at Openwork, said: “It is clear from this research that advisers believe much more needs to be done by schools, trade bodies, employers and the government to promote the value of financial advice.
“Although we live in challenging and uncertain times, with long term impacts of covid-19 on society and the economy still unknown, it remains important people understand the benefits of financial advice as well as the different types of services and products out there to support their long-term financial wellbeing.
“More now than ever, we should all be working together to promote the value of advice to people. People will be facing unprecedent financial challenges bought about by covid-19, with many now having questions or concerns about their own financial situation and unsure where or who to turn to for help.
“Ultimately, a good adviser will not only help people understand their financial goals but more importantly help them to find the most appropriate way to achieve them.”
