Advisers Call For ‘Value of Advice’ Campaign

  • Government, schools and the industry should do more to highlight the value of advice

  • Clients value advice and are willing to pay for it, Openwork study shows

Our new research shows financial advisers believe more needs to be done to promote the value of advice and educate potential clients.

The study found widespread support from advisers for a campaign involving schools, the Government and trade bodies to promote the value of advice particularly in the current challenging circumstances. Our research found advisers generally find clients are receptive to paying for advice. 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.

However, advisers believe more needs to be done to alert potential clients to the services that advisers provide. The most popular way to promote the value of advice the research found was making it part of financial education in schools - 65% said more emphasis should be placed on financial 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.

Online services such as The Pension Advisory Service, The Money Advice Service and the Money and Pensions Service provide some financial advice support, however, advisers believe more needs to be done to promote these options.

According to the findings, advisers want action from the Government, with nearly half of those surveyed – some 47% - arguing that a Government-backed campaign targeting working adults would be equally effective at promoting the value of financial planning.

There is nothing in the UK mandating employers to promote the value of advice to their employees and four in ten advisers said that this needs to change, with employers encouraged to offer financial advice and guidance in the workplace.

PIMFA Chief Executive Officer, Liz Field said: “We welcome the findings of the Openwork research that add to the ever-growing body of evidence to highlight the important role of our sector and the true value of advice it provides to individuals and families as they plan for their personal financial futures.

“Advice from qualified financial professionals is proven to lead to better financial outcomes across all segments of society. It is all our responsibility to ensure that people are provided with the best information, guidance and access to advice to ensure they are empowered to make important decisions about their futures and safeguard their financial and mental wellbeing.”

Mike Morrow, Wealth & Platform Director, 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.

“At Openwork, we are committed to promoting the real tangible benefits of speaking to a financial adviser, who can contribute knowledge, experience and expertise and take care of most of the legwork for their clients. 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.”

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