IFAs lose sleep over asset allocation
A new survey shows 60% of independent financial advisers in the UK are concerned they could face regulatory issues if their asset allocation advice is challenged by disgruntled clients.
The research of 100 IFAs, conducted by financial adviser MetLife Europe, showed advisers feel vulnerable to regulatory action against them if their advice fails to pay off.
The survey shows 41% of advisers have plans in place to deal with any potential regulatory problems if their asset allocation advice is challenged.
However ,18% have not taken action to deal with any potential complaints over losses in the wake of steep falls on stock markets worldwide.
The research shows 62% of advisers would welcome more support from providers on asset allocation. It found around a fifth of IFAs say expertise in asset allocation is their main selling point when talking to clients while another 53% say asset allocation is important but could be outsourced.
Dominic Grinstead, managing director of MetLife UK, said: “Advisers are genuinely concerned that the unprecedented economic events of the past year will end in regulatory action against them and it is an understandable fear as it is certainly the case that clients have suffered."
He said: “It is reassuring that substantial numbers of advisers have plans in place to ensure that they are protected from potential regulatory issues but even with plans in place regulatory scrutiny is a risk."
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