Introduction
The Financial Conduct Authority (FCA) recently released its latest Financial Lives Survey, revealing some eye-opening statistics about the public’s perception of financial advisers. While the survey shows that those who have used financial advisers generally trust them, a significant portion of the public remains sceptical. This post delves into these findings and argues for the need for non-intermediating financial planning.
The Good News: Trust Among Clients
According to the FCA survey, 87% of clients who have used a financial adviser in the past year trust them. This is a positive indicator, especially when considering that emotional intelligence is often cited as a key quality for financial advisers.
The Not-So-Good News: Public Perception
However, the survey also reveals that only 8% of adults had received financial advice in the last year. Of the 92% who haven’t, a staggering 8 in 10 believe that the advice might be biased. This raises questions about the integrity of the market and the need for transparency.
The Wealth Gap
The survey indicates that financial advisers tend to focus on individuals with over £100,000 in investable assets. This is a concerning trend, as it suggests that financial advice is becoming a service exclusive to the wealthy, leaving a significant portion of the population underserved.
The Case for Non-Intermediating Financial Planning
For the sake of market integrity and to address public scepticism, there needs to be a clear separation between advice and assets under management. This is where non-intermediating financial planning comes into play. By removing the intermediary, we can ensure that advice is unbiased and serves the best interests of the client, not the adviser.
Conclusion
The FCA’s Financial Lives Survey serves as both a wake-up call for the financial advice industry and a rallying cry for those of us advocating for non-intermediating financial planning. While trust among existing clients is high, there is a significant gap in public perception that needs to be addressed. By embracing non-intermediating financial planning, we can work towards a more transparent and inclusive financial advice landscape.
Academy of Life Planning 