Where am I? 
Home Better Business Regulation RDR
Categories: RDR| Investing in the profession
Topics: CII| personal finance education| RDR| FSA
Up to 11 million additional people could seek financial advice if the aims of the retail distribution review (RDR) are explained to them properly, the Chartered Insurance Institute (CII) estimates.
Research commissioned by the organisation found 81% of the public does not know about the new qualification requirements, while 80% are unaware of how the changes will affect the way financial advisers are paid.
However, once the outcomes of RDR were explained to them, 33% of those who do not currently take financial advice - equating, the CII estimated, to some 11 million people - said they would consider doing so.
Among the 25-34 year old age group, 48% said they would consider financial advice, while the corresponding figure for those within the social grade C2 (skilled manual workers) was 38%.
David Thomson, director of policy and public affairs at the CII, said: "It's clear that to engage the public and be successful, the RDR should be communicated clearly to a broad consumer audience.
"We believe the onus for communicating the key elements of the RDR lies with the Money Advice Service - which provides an independent and impartial platform from which to educate consumers."
The research was conducted online by Populus for the CII in May 2011, with 2,055 individuals participating from across England, Scotland and Wales.
Earlier this week, the Money Advice Service launched its online health check, promising to help users make the most of their money, giving them an action plan and "clear goals".
| Share | |
| Comment | CII expects 11m more will seek advice post-RDR |
More rdr news
Email alerts
Recommended reading
Categories
Topics
Comments
earth calling CII...
earth calling CII, hello is there anyone out there who believes this drivel? Think of a number and multipy it by anything which souunds good - from the best estimate department at the CII.
Posted by: Fraser Brydon
11m will seek advice post RDR
Can't argue with that because I don't know the facts. However the problem is: * There aren't enough advisers to look after that number, and there will be even less advisers post RDR. * Nobody wants to work with the 25-34 age range as they have not yet achieved the HNW stageof their Financial life cycle. * The last JPM survey of fees suggested something like 5% of the public would pay for advice, and the maximum per hour they would pay was £30. I may be a little out on the figures but I'm not sure even 'New Model Advisers' could make this business model work. So what will happen - This 11m will seek decision tree advice of the internet and possibly not get what they need, or the won't seek advice at all, or they will 'nip' to the Bank, because advice is free under the simplified model, pre and post RDR! Apologies for my cynical view, I'm normally much more positive about RDR, but I can't help the feeling that thi is just more tripe from the CII.
Posted by: Phil
CII profiteering!
You'd expect them to say that to justify their rubbish exams. Pull the other one.
Posted by: incompetent regulators award team
LOL
What a load of tosh! Nicely worded by the CII 'would consider' taking financial advice. I would 'consider' buying a Ferrari California but sadly my budget will never stretch to that. Were those that would 'consider' this told that they would be paying a fee to the adviser? Like the article regarding youngsters views of advisers, this is complete nonsense. Got to go now, RO study and gap fill to complete!
Posted by: Adamski
Tooth Fairy
I wonder if they asked how many believe in father Christmas ? 11m may consider something but if they expect to pay no more than £35 per hour then there will be a problem. The FSA have simply made the giving of advice too expensive.
Posted by: John Blackmore
CII
If the CII genuinely believe this statement then they can join the ranks of the FSA, The Treasury and the Government in the race for the Idiots of the Year Award.No wonder this Country is a laughing stock in Australia and New Zealand. Thank god I only have 10 years to retirement, that's if I live that long!!!
Posted by: fiona
At what price?
These so called 'surveys' can be structured to obtain whatever result you want. Its all about the questions and how they are asked. I wonder if the cost of advice was ever mentioned and how much they would be expected to pay? I suspect not. The reality is that most people will not be prepared to pay us the true cost of advice and IFA's with relatively small low to medium net worth client banks will go out of business. I am sure that the FSA and the cii think that we see 4 or 5 people a day and we have a queue outside our door. Once we start asking for anything above £300 we will be in trouble! I suppose the cii had to spend some of the millions that they are making from the RDR on something!
Posted by: Realist
Continuously Inane Information
This from the organisation that presumes to set standards for us to meet! I wouldn’t put them in charge of a baby puking contest on the basis of this nonsense. Did they mention what the fee would be? Did they mention that not all advice would be independent? Did they point out that academic attainment is no guarantee of competent advice (admittedly the opposite is also true). I guess it got them some column inches. But I’m waiting to see what hoops they will be dreaming up after 2012 once the rush to take their exams gas subsided. Doubtless they will be pushing the FSA to ensure we all attain professorships in finance so that we can really cock up the economy just like LTCM.
Posted by: Harry Katz
Up to 11 Million people
Yes, I think that I saw one of these 11 million the other day, in the 100,000 crowd at Wembley. Weren't any others on view though (they'd spent all their money on buying tickets for the match). Where are the other 10 Million, 999 thousand, 999 people? CII, tell me that!
Posted by: CONFFA
wishful thinking
If the C!! paid money for someone to give them such advice, they need a new financial adviser. This is nothing more than wishful thinking.
Posted by: malvin brown
CII Expects 11M
The fact that the CII says this and might even believe it demonstrates just how much they are out of touch with the reality of the general public and what the banks and insurance companies are going to be getting up to when RDR kicks in. Considering is one thing writing out a cheque or handing over cash plus having to pay VAT in additon is another, particularly as employees of banks, building societies and insurance companies will be going about telling the general public their services are for free. The CII has a captive market from which to draw their income and have had ever since the financial services exams became compulsory which saved them from going broke or merging with an antipodian counterpart. IFAs do not have a captive market from whom they can extract fees. When discussing fees with many clients they still come out with "Oh we have never had to pay them before?" Lots of these types of reluctant fee payers will walk off into the greedy, unscrupulous bank and insurance company direct sales forces. They are recruiting in readiness for it.
Posted by: John Smyth
Hale Bop
Wow Mr CII will this drink really take me to paradise.
Posted by: Peter Smith
Fairy Stories
I agree wholeheartedly with all the above comments, it's the banks who are rubbing their hands together in anticipation of new customers rolling in to them. Fees at the true level required for most business models will be a turn off for the vast majority of consumers, and also for many existing clients of IFA firms. Once people fully realise the clock is ticking away on the desk in front of them at about £100 per hour more than they want to pay they won't be too keen to make contact. Existing clients will want to keep things very short and snappy, cosy chats and lengthy interviews will be avoided like the plague. Just like we all do when dealing with other so called fee based professionals- like lawyers. About the bottom of the pile on our list of priorities for an interview, unless we've no other option. Why? Mainly because we know how good they are at racking up the fees.................and why online legal services are boomimg.
Posted by: Lecuticus
OMG article again!!
They would say that wouldn’t they! But honestly why print such rubbish? This site is fast becoming the “News of the World” of IFA blogs, full of tosh, and only mildly amusing! Good though if you like winding IFA’s up!! I presume that’s what you are trying to do!
Posted by: Mike
Fairy Stories
I agree wholeheartedly with all the above comments, it's the banks who are rubbing their hands together in anticipation of new customers rolling in to them. Fees at the true level required for most business models will be a turn off for the vast majority of consumers, and also for many existing clients of IFA firms. Once people fully realise the clock is ticking away on the desk in front of them at about £100 per hour more than they want to pay they won't be too keen to make contact. Existing clients will want to keep things very short and snappy, cosy chats and lengthy interviews will be avoided like the plague. Just like we all do when dealing with other so called fee based professionals- like lawyers. About the bottom of the pile on our list of priorities for an interview, unless we've no other option. Why? Mainly because we know how good they are at racking up the fees.................and why online legal services are boomimg.
Posted by: Lecuticus
CII - YOU'RE MAKING YOURSELF LOOK EVEN MORE RIDICULOUS
Articles and out-of-the-air figures like this are utter garbage and beggar belief. Not worth writing, and as it transpires, not worth reading. I've enough rubbish to read on this similarly ridiculous 'gap-filling' nonsense.
Posted by: Keith Jayne
lies lies and damned statistics
And Elvis will be one of those seeking advice!
Posted by: Afia
Absolutely
Absolutely right. Our in house calculations produced the same figure. We are negotiating with the Council for additional parking for the coach parties and installing heavy duty carpet in the office to cope with the increased foot fall. We are also finding our policy, copied from the CII, of adding hallucinegenics to the water dispenser very worthwhile.
Posted by: Huw
Cii
So 81% of the general public dont know about the new qulaifications?? More like 99% of the general public dont know about the new qualifications. Get in the real world for once. Absoloutely ludicrous, where do they get these stats from we will never know.
Posted by: Simon
Well Done!
Congratulations! What a superb set of comments.It gladdens my heart to see no-one is taken in by the CII's inane rubbish.Has anyone else noticed that the majority of financial disasters have taken place post 29/04/1988 rather than pre-29/04/1988 : the road to hell is paved with good intentions.
Posted by: English Bill
The Consumer's View
This story has clearly illicited some strong views most of which seem to be critical of the CII for some reason. The reseArch was conducted online by Populus for CII in May 2011. 2,055 individuals participated representing age groups from 18 – 65+, all social groups and all geographic regions in Great Britain (excluding Northern Ireland). We don't make this stuff up. There is no spin. These are the views of 'Joe Public'. You can choose to ignore them or to berate the CII for seeking input from customers but it doesn't change the fact that consumers say that having had the RDR explained to them they would be more likely to seek financial advice. If you think the research is flawed I can assure you it's not and I would be happy to provide more detail to anyone who's interested. The challenge for the sector would seem to be how best to articulate the RDR to consumers. If this can be done then there appears to be significant opportunities for financial advisers.
Posted by: David Ross
Related articles
Most Read
Audio / Visual
With the industry's biggest fund managers, IFAonline welcomes you to the media centre.
This year we have 14 awards designed to mark out the very best products in a highly competitive and innovative market. This includes three new awards for 2011 to reflect the developments in this rapidly growing market: Best Dual/Multi-Index Product, Best Structured (Oeic) Fund and Best Structured Product Provider.
Events
Poll
|
|
Job search
Ifaonlinejobs will open the right investment career path for you. Search hundreds of vacancies on www.ifaonlinejobs.co.uk now
In Focus
Two months left before the ‘real RDR deadline’ – are you compliant with the required professional...
Viewpoints
2012 marks a watershed for the Life companies, fund managers, banks and advisers who service...
sponsored by
earth calling CII...
earth calling CII, hello is there anyone out there who believes this drivel? Think of a number and multipy it by anything which souunds good - from the best estimate department at the CII.
Posted by: Fraser Brydon