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For
Immediate Release: Tuesday 20 May 2003
NEED
FOR ADVICE INCREASES BUT INVESTORS ARE STILL UNAWARE OF THE
COSTS
The annual Unit Trust Information
Service survey into investor attitudes and behaviour
conducted by the IMA, highlights the increasing demand for
financial advice during periods of stock market volatility.
This year, 46% of participants indicated that they had used
an IFA as an information source for investment decisions,
the highest since the survey began.
IFAs were also the preferred
distribution channel for people investing directly into unit
trusts and OEICs (28%) however, ISA investors (including
those investing in cash ISAs) preferred to buy through their
bank or building society (55%), with only 19% choosing to do
so through a financial adviser.
Respondents who had taken financial
advice indicated that their preferred payment method was fee
based (44%) however, the amount they were prepared to pay
fell somewhat short of actual costs. The survey shows that
on average respondents would be prepared to pay £46 per
hour or an average one off fee of £87.
Helen Stephenson, Communications
Officer at the IMA commented:
“The UTIS survey clearly
shows that financial advice becomes increasingly important
to consumers in times of market volatility. However, they
seem to be unaware of the costs of such advice, with
respondents’ expectations of fee levels being
considerably lower than those actually charged.”
UTIS report attached
- hard copies available on request
-
Ends -
For
further information, please contact:
Helen
Stephenson, Communications Officer, IMA, 020 7831 0898
Clare
Arber, Head of Communications, IMA, 020 7831 0898
Notes to
Editors:
If
a copy of the survey is not attached, it can be found on the
IMA website,
attached to a copy of this press release.
This
is the ninth successive year that the survey has been
commissioned by the Association. The survey was conducted by
Continental Research using 508 interviews which were carried
out between November 2002 and January 2003.
UTIS
is the Association’s dedicated, 24-hour information line,
handling all the public information booklets produced by the
IMA. Readers should call +44 (0)20 8207 1361 for the
range of free, generic guides. Alternatively, full details
are available from the IMA website.
65
Kingsway London WC2B 6TD
Tel:
+44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975
www.investmentuk.org
Investment
Management Association is a company limited by guarantee
registered in England and Wales Registered number 4343737.
Registered office as above.
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