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Most investors unwilling to pay fees

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More than six in 10 (64%) investors would stop using an independent financial adviser if they started charging hourly fees.

According to research from Legal & General Investments, this reluctance to fork out upfront fees comes despite the fact that 34% admit that their financial adviser has the most influence on their investment decisions.

Following the implementation of the Retail Distribution Review (RDR) in January 2013 just one in five (19%) investors said they would continue to let their adviser recommend investments while 41% will continue to only invest directly. Almost one in 10 (7%) will start investing directly as a consequence of RDR. Worryingly, a quarter (24%) of investors are unsure of how they will make investments in a post-RDR world.

Simon Ellis, Managing Director, Legal & General Investments, said: “The notion of paying for advice has been one of the main bones of contention for industry and investors alike since the announcement of RDR. Although a fee based model is supportive of a transparent relationship between and adviser and client, the level of consumer aversion to it at this late stage is concerning.

“The Legal & General Investments website can help make investing easier, acting as a ‘go to’ place for straightforward, easy to understand investment information from a trusted brand.

“Yet, for many, advice is still necessary and RDR presents a distinct challenge for advisers to differentiate their offering. They need to highlight the added value they can bring to the table, both understanding and meeting the needs of a more demanding consumer.”