Abstract
This report examines the key issues facing the market for financial advice. It considers current economic factors and the impact of proposed regulatory changes. The size of the intermediary market, and the main markets for financial advice are assessed, while the report also considers recent market developments. Mintel' s consumer research provides a valuable insight into consumer attitudes towards financial advice. This covers an assessment of product and asset ownership, the sources of financial advice, barriers to advice and also consumer perceptions of the main channels of advice.
Key themes of the report:
- Social and demographic trends suggest the need for financial advice will continue to increase. However, low levels of financial engagement continue to undermine market expansion.
- The market still suffers from relatively high levels of mistrust, which stems from previous miss-selling scandals and perception of commission-ledbias.
- The current economic slowdown will create challenging conditions for those operating within the market for financial advice, particularly for those offering mortgage and other borrowing advice.
- FSA proposals to reform the retail investment market and the introduction of a national money guidance service will have major implications for the future structure and outlook of the market.
- The Internet is becoming an important source of financial advice, this is set to increase in the future and will pose a major challenge to traditional forms of financial advice.
- Consumer research highlights the difference in attitudes towards various channels of advice, in terms of knowledge, cost, trust and other emotional factors.
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