Only half of UK savers would pay fees for advice

Less than half of UK savers are prepared to pay fees for financial advice in findings which will be seized on by the anti-RDR lobby.

A pan-European survey of 1,000 UK residents found only 46% would be prepared to pay fees for advisery services. A total of 47% believe by paying fees they would receive more personally tailored advice, according to the research for Fidelity International.

The change to a fee-based remuneration system is one of the most controversial aspects of the RDR, with some groups such as Alan Lakey's Adviser Alliance arguing the change will reduce consumer access to financial services.

In a further blow to the public's level of confidence in financial advisers, the survey suggests British savers are as likely to seek financial advice from friends and family as they are from IFAs.

Only 14% of respondents said they were influenced by financial advisers when making their last purchase - the same proportion as from friends and family.

The majority (26%) were influenced by a bank or insurance company agent, with 15% basing their decision on a product provider website, 11% on other websites, while 10% said they were influenced by the media.

Tom Stevenson, investment director at Fidelity International, puts a positive spin on the findings, saying the research represents good news for advisers.

With savers tapping into such wide sources of help when making financial decisions, says Stevenson, the implementation of the RDR and a fee-paying system presents an opportunity for advisers to distinguish their service from other forms of "advice".

"Many British people say they do not need advice but the fact they are talking to family and friends, the staff at their local bank or surfing the internet shows they are looking for help.

"British savers and investors wish to gain access to the best products in the market, with 79% considering it important to be offered products from a range of different institutions. They also wish to be offered a range that is not over-complicated, with 37% saying they do not wish to become involved in a choice that is too complex. "

He also points to the fact 82% of respondents said one of their top priorities is fees are fully disclosed, with 82% judging this as 'essential' or 'very important'.

"It is reasonable to conclude that British savers do want advice and they would be prepared to pay a fee if they knew how to get easy access to unbiased, whole of market advice for which the cost is clear to them," he adds.