The consumer research on fees for advice revealed by Aviva at our recent RDR Executive Forum and subsequently commented on in the trade press (Public reject paying fees for advice) should not come as a revelation to anyone.

Our own client research reveals widespread gloom as to the prospect of a warm welcome from consumers to paying for financial advice regardless of their socio-economic backgrounds. But maybe the scenario is not as gloomy as many predict. Of course paying for something that was previously perceived to be free is always going to be a tough call (we cannot hide from this one as we were happy for many years for clients to think it was free!) but if the industry as a whole looks to promote the need for consumer financial advice and sell its virtues then consumer attitudes can be changed.

I am not suggesting that for the majority of consumers, whose portfolios are not complicated, fee based advice will be a regular occurrence but if the potential damaging impact of not taking advice is explained then consumers may think twice. It is up to all of us especially the product providers to look to sell getting advice as the common sense, almost socially acceptable thing to do. The majority of people would not look to self educate when looking at a legal issue or moving house, they pay for legal advice. Most people expect to pay something for dental treatment, they would not get the bloke next door to do it for free, most people pay for a professional to undertake a buildings surveys on their home, in short we all expect to pay because we know it’s specialist and important.

So why don’t people think financial advice is specialist and important? Is it the simple fact that financial advice, especially around investments, is all about a pleasure deferred? When the majority of people listen to investment advice it all seems negative in that it involves taking money away from them for some nebulous benefit some years hence. There is no instant gratification, no tangible reward for the loss of disposable income, and crucially if I do not take the advice I have no perception of the damage it might do long term as what I never had I never missed AND the government will provide won’t it? All other types of paid for advice may not be loved but the impact of not getting specialist advice is well understood and is to be avoided however unpleasant the fees.

So it’s our job, if this industry is to thrive and serve the public more effectively, to promote the idea that financial advice is specialist and important just like all other advice BUT we must accompany this with clear examples of the impact of not taking this type of advice. We are going to be helped going forward by young people observing the hardship of retiring parents for whom state provision is just a subsistence living and realising they want to avoid this fate. People will not pay for advice without a clear, consistent and constant imperative that we all have to plan to deliver as soon as possible.