Survey reveals investment advice fears
There is big news this week considering the impending changes to investment advice law.
A survey by commission rebate specialist InvestSmart – admittedly a party with a vested interest in retaining the commission system – has shown that the decision to ban commission on investment products from next year might leave investors in the dark.
Instead of receiving commission for their investment advice financial advisers will have to charge clients a fee.
Opponents of this change say that although it might seem like a good idea on the surface, the prospect of being charged a fee means that many investors will be discouraged from seeking advice at all.
InvestSmart’s director comments, “It’s out with commission and in with fees, but our research suggests that many investors will be reluctant to pay for advice. This will have the unintended consequence of driving people away from traditional financial advisers and into the arms of ‘DIY’ websites, where you make your own decisions.
“In our experience, most people genuinely still need help with their investments because it is a complicated area. We fear that a generation of people relying on the internet, social media and friends and family will not have backup if they make the wrong decisions.”
However, the investment advice changes are likely to have little impact on those who receive most of their advice from solicitors, particularly in the area of trusts, Court of Protection matters, and inheritance tax planning.
For details of George Ide’s solicitors areas of expertise in investment advice, please click here.General