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Investor survey finds barriers to advice

Latent demand for professional advice is high among direct investors, though a number of identifiable barriers remain, according to the latest research from CoreData.

The study found that more than half of direct investors not currently advised would be likely to consider professional advice, but are held back by a number of factors.

“The three key barriers to seeking advice, namely trust, proof of tangible value add and affordability of fees, emerge as critical drivers for tapping into latent demand for advice usage,” said CoreData head of advice, wealth and super Salvador Saiz.

Specifially, the study found that cheaper fees would be a particular trigger for those considering taking up financial advice services.

In addition, the study found that investors are demonstrating strong demand for scaled advice, keen to engage with advice services “delivered more on their desired terms”.

“The research suggests scaled advice provides a unique opportunity to start conversations, demonstrate value and develop trusted relationships with investors that may go on to become full service arrangements,” Mr Saiz said.

Three quarters of investors are likely to engage comprehensive advice services if satisfied with the scaled advice provided by an adviser, the study found.