A new survey has found the FOFA-like UK financial advice reforms have seen 60,000 “lower value” clients priced out of professional advice services.
According to research compiled by NMG Consulting and commissioned by the UK Association of Professional Financial Advisers (APFA), 47 per cent of the 328 investment advisers surveyed turned down clients because they could not justify the costs now associated with providing advice to these clients since the introduction of the Retail Distribution Review (RDR) reforms.
Of these, 40 per cent confirmed they had turned away five or more clients since RDR implementation on 1 January 2013.
"As a result of the implementation of RDR, financial advice firms are more focused on costs,” said APFA director general Chris Hannant.
“Clients' fees need to reflect the cost of providing the service, whilst at the same time RDR has added to the operating cost of firms due to the resources needed to comply with the new rules.”
“As a result, advice is now less viable for some.”
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