8 Sep 2016
Almost 60 per cent of financial advisers are confident that the UK’s planned departure from the EU will not have a negative effect on advice firms.
In our recent annual Adviser Sentiment Summer Survey 2016, Panacea gathered views from over 60 advisers on some of the biggest issues currently impacting the financial advice sector including the recent Brexit vote, which 42% of advisers believe could prove damaging to their business while 58% disagree.
There has so far been no shortage of surprises in the financial services sector and beyond in 2016. So amidst the short-term market volatility and political upheaval that has taken place since Brexit, it is positive to see that advisers remain confident in the outlook for their business: sentiment which will hopefully have been passed onto clients by providing reassurance and sound financial advice.
Adviser views: FAMR and Annuities v drawdown
The survey also asked advisers to share their opinions on the Financial Advice Market Review (FAMR) revealing strong opposition to the FCA’s latest initiative, with 60% of respondents arguing that it will not help to plug the advice gap. Meanwhile 55% of advisers said that they themselves are not planning to develop a simplified advice solution for lower net worth clients who can’t afford or don’t want to pay for advice.
One of the biggest developments in the history of financial services, the new pension freedoms are now seeing almost 80% of advisers surveyed recommend drawdown to clients over an annuity.
The arrival of FAMR was met with some surprise when launched earlier this year, with many arguing that it did not produce the focus and tangible actions that the industry needs to move forward. This feeling is clearly echoed in our survey, with advisers suggesting that FAMR will not be able to deliver its key aim of filling the advice gap and will therefore fail consumers.
There has been much speculation whether the pensions overhaul would mark the death of annuities, and while annuity sales have yet to see the significant drop that would come with this, our survey indicates that adviser demand for annuities could certainly be waning.
More results from the survey can be viewed in the infographic below.
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