Research from Legal & General Investments, one of the UK's largest investment providers, shows that 95% of IFAs believe their clients are increasingly trying their hand at DIY investing.
The findings come from Legal & General Investments' annual What Matters Investment Index, which aims to investigate the views of the IFA community, tracking how sentiment and behaviour changes over time.
Ahead of the implementation of the Retail Distribution Review in January 2013, Legal & General Investments' research has also shown that over half (53%) of IFAs believe there will be a rise in the number of DIY investors in the market because of the new legislation.
Of those IFAs who expect an increase in DIY investing, 61% believe we will see more providers launch D2C products, while almost one in five (17%) believe that consumers are likely to become more investment savvy.
Interestingly, this year, fewer IFAs thought that an increase in DIY investors would lead to consumers ending up with unsuitable investments. This fell from 79% in 2011 to 68% in 2012.
Simon Ellis, Managing Director, Legal & General Investments, said: "In the current climate and with the imminent implementation of RDR, it is no surprise that many IFAs believe their clients are already trying their hand at DIY investing. Investing without an appropriate level of knowledge or support could mean a rise in unsuitable investments. However, it is interesting to see that some IFAs think DIY investors are savvier now than last year."
He concluded: "It would be naïve for advisers or providers to assume that access to information and decision support via the internet will not encourage more consumers to make their own investment choices. The challenge will be to show the value of advice over data gathering and cheap execution, or to become a player in this non-advised marketplace."
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