Wednesday, 28 November 2012 12:29
Trust most important to consumers when choosing an adviser
The latest Financial Planning Week survey has revealed trust is the most vital factor when consumers are choosing a financial adviser.
The Institute of Financial Planning is holding a series of daily polls in association with YouGov and sponsored by Lionstrust on various financial issues.
Respondents were asked what would be the important factor for them when choosing an adviser and given the option of choice of products, cost, qualifications and trust.
Almost half of consumers said trust in their chosen company and adviser was a critical factor when choosing an adviser. This increased to 52 per cent for those aged over-55.
Just 19 per cent said the cost was most important while only six per cent said the advisers' qualifications were important to them, despite the significant focus by the Financial Services Authority over the past few years on these two issues.
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Nick Cann, chief executive of the IFP, said: "Whilst we've known that trust is an increasingly important factor for consumers, it's interesting to see quite how strong the feeling is. The degree to which the cost of advice is a secondary issue is also enlightening as there has been much debate on whether this will put people off seeking professional advice."
Shane Mullins, founder of the Question of Trust Campaign, said: "With the attrition of trust running so deeply across all walks of life, it is not surprising to see from a consumer perspective, just how overwhelming the case for trust is.
"Most importantly, the Financial Planning model provides a framework to deliver advice that puts clients at the very heart of this process.
"Our research as a campaign group demonstrates this issues cannot be taken on face value alone. To win as a trusted adviser in the hearts and minds of clients, we must focus on behaviour and attitudes that drive greater engagement."
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The Institute of Financial Planning is holding a series of daily polls in association with YouGov and sponsored by Lionstrust on various financial issues.
Respondents were asked what would be the important factor for them when choosing an adviser and given the option of choice of products, cost, qualifications and trust.
Almost half of consumers said trust in their chosen company and adviser was a critical factor when choosing an adviser. This increased to 52 per cent for those aged over-55.
Just 19 per cent said the cost was most important while only six per cent said the advisers' qualifications were important to them, despite the significant focus by the Financial Services Authority over the past few years on these two issues.
{desktop}{/desktop}{mobile}{/mobile}
Nick Cann, chief executive of the IFP, said: "Whilst we've known that trust is an increasingly important factor for consumers, it's interesting to see quite how strong the feeling is. The degree to which the cost of advice is a secondary issue is also enlightening as there has been much debate on whether this will put people off seeking professional advice."
Shane Mullins, founder of the Question of Trust Campaign, said: "With the attrition of trust running so deeply across all walks of life, it is not surprising to see from a consumer perspective, just how overwhelming the case for trust is.
"Most importantly, the Financial Planning model provides a framework to deliver advice that puts clients at the very heart of this process.
"Our research as a campaign group demonstrates this issues cannot be taken on face value alone. To win as a trusted adviser in the hearts and minds of clients, we must focus on behaviour and attitudes that drive greater engagement."
• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.
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