Only 21% of employees are aware that as of 2013, people will have to pay for advice when speaking to an independent financial adviser, according to new research from Canada Life Group.
While overall consumer awareness of RDR is low, awareness is slightly higher amongst men, with 25% of men aware of these changes compared to 19% of women.
Once the upcoming changes were explained, 49% of employees predicted that fewer people will go and visit a financial adviser as a result. The 41-50 and 51-60 age groups in particular felt that people would not be prepared to pay for financial advice unless the value was clearly outlined, with 53% in agreement.
This comes despite the fact that 15% feel that due to upcoming changes such as auto-enrolment, they will need financial advice more than ever. In addition, 13% would like access to a financial adviser from their employer, demonstrating that advice is seen as important.
Meanwhile, 25% of employees believe that they do not earn enough to seek financial advice.
“At a time when financial advice is likely to be more important than ever before, almost half of employees predict people are less likely to visit a financial advisor once RDR comes into effect,” said Paul Avis, sales and marketing director at Canada Life Group Insurance.
“This suggests that advisers still have a great deal of work to do explaining RDR to customers and clearly outlining the value of advice.
“Inevitably, some clients will object to paying for guidance, so intermediaries may wish to look at sections of the market which have not been hit with this legislation as they adjust their business models.”