IFAs Predict RDR Will Drive Investors into Self-Investment

Over 50% of IFAs are claiming that the upcoming retail distribution review (RDR) will likely push consumers towards self-investment over the course of the next year as they look to escape all of the new regulations. Legal & General (L&G) Investments claims in their report that 57% of advisers believe that investors will take the process into their own hands, while nearly two thirds believe the RDR will increase the numberĀ of direct-to-consumer products in response. 80% of IFAs also claim that this will result in investors making poor choices that will harm them in the long term, with many also predicting a rise in complaints to the Financial Ombudsman Service as a result. "I would not be surprised if private investors turn to the internet more as the place to research and buy funds," said Simon Ellis, managing director of L&G Investments. "The challenge for providers and advisory firms is to decide whether they wish to participate in this developing market, and if so to ensure consumers make well-informed decisions."
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