Even before a consumer faces the hurdle of finding a good IFA there are plenty of issues – one of which is just identifying when a financial adviser is required.
Often it is a case that households don’t even know when they think they need to take financial advice. In many instances I have seen it may be a change in job or the starting of a family that stimulates the need to find an IFA. But with adviser fee’s typically at £600 a go it is understandable that many feel priced out of the market. This is raising fears that a significant demographic is drifting towards a financial ibis and taking risks with their financial planning they never would if rudimentary financial advice was available across the board.
The situation is made all the more difficult for households due to a lack of transparency form the IFA’s themselves. As people rarely take financial advice it is hard for them to know what to expect to pay.
Interestingly ‘Which?’ is campaigning to have IFA’s publish their typical fees for advice. In effect to allow people to window shop and make an informed decision about which IFA to choose. It seems remarkable by it’s absence – after all dentists to mechanics published pricing structures. It makes you think that IFA’s have intentionally held back from transparent pricing in part as they wish to propose a fee based on their perception of what the client can afford.
Whatever the case there needs to be a process to better education people to know when they need an advisor as well as providing transparent pricing and ratings of IFA’s to allow consumers make an informed choice.