AIFA finds pay by fees increase
The January 2006 survey also revealed that in line with the survey carried out in August last year, the vast majority of business carried out across investments, protection and mortgages is being transacted on an independent basis.
However, this time round there seems to have been a significant increase in the amount of investment and protection business being transacted on an independent basis.
In addition, as the overall totals for this question exceeded 100 per cent, the results appear to suggest that a number of firms could be operating two advice models.
Fay Goddard, AIFA’s deputy director-general, said: “Six months after our first survey on depolarisation, there has been an increase from 12 per cent to 18 per cent in the number of consumers who are now opting to pay by fees. This is in line with our view that any change in consumer behaviour when it comes to paying for advice is likely to be evolutionary rather than revolutionary.
“The results on the basis on which firms do business would seem to suggest that more firms are now providing independent advice under the FSA’s new definition than immediately following depolarisation and have a proper fee structure in place. But the results also appear to suggest that as depolarisation has bedded down, more firms are diversifying their businesses and are operating more than one advice model.”