17th June 2011

Ascentric: Advisers support cash rebates and transparency

Advisers support cash rebates and transparency

An Ascentric survey of over 90 advisers showed that 90% agreed or strongly agreed that unbundled charging provides client transparency. Echoing a view shared by many platforms, IFAs and fund managers, the survey also showed that 86% of advisers believe fund manager cash rebates to the client cash account should be allowed to continue. And only 21% of the advisers surveyed felt that using a single platform affected their independent status.

Commenting on the results, Richard Goodall, Sales & Marketing Director at Ascentric said, "There are some very clear messages here including an overwhelming view about unbundling and cash rebates from a good cross-section of advisers. We hope the FSA considers this response in the run up to regulation."

The survey also showed that 93% felt their business will be RDR ready and 85% were distinctly optimistic about the future of financial services. However, there were very mixed views about the economy with only 21% believing the UK was out of recession and 33% lacking confidence that the Government is in control of the economy.

Most advisers believe clients now expect more from them as advisers than a year ago and they should be using the latest technology as part of their service proposition. Only 14% and 8% respectively disagreed with these views.

The jury remains out on whether the April Budget has been good for clients with over 60% of advisers stating that the reduction in Lifetime Allowance would affect clients while 57% felt their clients would benefit from Flexible Drawdown. The survey also suggests a comeback for MIPs with 53% of advisers indicating that they will play a larger part in future financial planning.

Richard Goodall added, "Despite continued uncertainties about the economy, advisers' growing confidence in the financial services sector and their ability to maintain their status post RDR indicates a real optimism about the future of the market."

The survey was undertaken at Ascentric's recent Tax Planning and Investment seminars in London, Bristol and Birmingham.

Investments