Rplan.co.uk has released a new research revealing that as a result of the Retail Distribution Review (RDR) 13% of financial advisers have stopped offering services to over 20% of their clients because they are no longer commercially viable.
“This means that many people are finding it difficult to secure financial advice and the research suggests that the problem could get worse because 56% of advisers interviewed are planning to stop servicing some existing client accounts over the next 12 months,” the report said.
Other key findings clients include:
- One in three (33%) of financial advisers have established or increased a minimum portfolio size for clients
- One in four (26%) now requires over £30,000
- 16% requires a minimum balance of over £50,000
|New minimum investment amount since the introduction of RDR||Percentage of financial advisers who now have this minimum investment threshold|
|Between £10,001 and £30,000||4%|
|Between £30,001 and £50,000||10%|
Stuart Dyer, Rplan.co.uk’s CIO, said: “Investors are clearly finding it more difficult to secure financial advice and given that our findings reveal 56% of advisers are planning to stop servicing some existing client accounts over the next 12 months, the advice gap is likely to become bigger.
“Since the introduction of RDR, we have seen a significant increase in the number of hits to our website. The fact that we offer tools to help investors select investments that reflect their risk profile is appealing to more people as they find it more difficult to secure professional advice.”