Nine out of 10 clients are satisfied with the advice they receive, new research suggests, though concerns remain about the accessibility of advice.
Only around nine percent of British Adults have a financial adviser, and more than a quarter of advisers have not contacted their clients since coronavirus crashed markets, a study finds.
In its annual advice report, consultancy Boring Money examines how the pandemic is shaping trends in the advice profession.
It combines nationally representative survey data of 6,520 UK adults and a survey of 2,000 fund investors.
The research stresses Covid-19 will have lasting effects on what people expect from their adviser.
Twenty-three per cent of advised investors say their expectations have changed, with more focus on personalised communications and regular updates.
Respondents also say video conferencing is positive and will last beyond the lockdown as it reduces travel time.
The attributes most valued in an IFA are soft skills to build relationships rather hard technical skills such as tax planning.
However, the advice gap is still alive as 28 per cent report they used to get advice but no longer do.
There are 11 million adults with investment products and/or a personal pension but no adviser.
Boring Money managing director Holly Mackay says: “Satisfaction levels remain extremely high although our detailed interviews suggest highly disparate levels of service.
“Of those advised customers we interviewed after markets crashed, 26 per cent reported having no contact with their adviser since lockdown started.
“Interestingly, customer appetite and acceptance of video calls has increased and now 63 per cent of advised clients say that they would be happy to engage with their adviser this way.”
But she adds: “It’s crazy that just 9 per cent of British adults have access to financial advice, leaving millions of investors to fend for themselves because it’s less risky for providers to know nothing about a customer and to offer no help, than it is to guide and to filter and to personalise tips, ideas and help.”
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