gliocasconsulting.com
INVESTOR ENGAGEMENT SURVEY
In this research report we evaluate the consumer journey from the removal
of commissions via the Retail Distribution Review to the introduction of
pension freedoms. What have these massive game changes within the
financial services profession meant for the private investor?
RESEARCH PAPER. ACTIONABLE INTELLIGENCE.
ABOUT THE AUTHORS
ABBIE TANNER
Abbie is a Marketing and Business Consultant, and
Lee is CEO of City-based Investment Quorum, a
draws on more than 15 years’ experience working
highly regarded wealth management boutique
in financial services in markets including the UK,
and a high profile wealth manager. He is listed
Australia, US and Canada. She has worked with
in the Spear’s Wealth Index as one of the UK’s
well-known providers including JPMorgan, SEI and
top fifteen wealth managers and is also a
Henderson Global Investors.
LEE ROBERTSON Citywealth Leader.
In addition to her role at Gliocas Consulting she is the Managing
Lee is a regular commentator within the national press and TV on
Director of A Business Innovation, a sector specialist marketing firm
financial matters and is in great demand by asset management groups
for financial planners. Abbie is a well-respected speaker and regularly
for his ‘buy side’ and consumer insight. This has resulted in him
contributes to industry forums. She also used to lecture at the
speaking at, and regularly contributing to, media, asset management
University of Technology Sydney (UTS).
and financial adviser events.
© 2015 Gliocas Consulting Limited
INVESTOR ENGAGEMENT SURVEY
On 1 January 2013 the market for financial advice in the UK changed
dramatically, when the Retail Distribution Review (RDR) came into
force. This single piece of legislation completely altered the way that
retail financial services are delivered; and was intended to provide
private investors with clarity over the different types of financial
advice available, improve fee transparency and raise professional
standards across the sector.
This paper looks at the consumer journey from the removal of
commissions via RDR to the introduction of pension freedoms based
on actual data and in-depth research, not conjecture. It seeks to help
wealth managers, financial advisers, trade bodies, platforms and asset
managers to understand current attitudes of the investing public arming them with Actionable Intelligence.
This is the first paper of many in a series and we believe it to be one
of the most comprehensive retail investor studies undertaken to date.
The findings of the survey get under the bonnet of changes in the
market place and the real impact on private investors.
gliocasconsulting.com
TA B L E O F C O N T E N T S
FOREWORD
04
DID RDR HAVE ANY IMPACT?
29
EXECUTIVE SUMMARY
05
ROLE OF D2C PLATFORMS
32
RESEARCH METHODOLOGY &
HOW DO CLIENTS WANT TO PAY
RESPONDENT PROFILE
07
FOR ADVICE?
34
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T R A N S A C T ION A L GR OUP
07
ABOUT GLIOCAS CONSULTING
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A DV IS ED (C ON T R OL ) GR OUP
07
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C ON S UL T A N C Y OP T ION S
36
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IN V ES T MEN T EXP ER IEN C E
11
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MA N DA T ES & R EP OR T S
37
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T A K IN G IN V ES T MEN T A DV IC E
12
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R A N GE OF S ER V IC ES
38
PROFESSIONAL ADVICE VS. DIY
13
ADVICE SOURCES
›
IS B IGGER B ET T ER ?
16
HOW DO INVESTORS FIND
AN ADVISER TO WORK WITH?
19
DO PROFESSIONAL QUALIFICATIONS
MATTER?
22
DO INVESTORS FEEL PROTECTED?
23
WHAT ATTRIBUTES DO CLIENTS
LOOK FOR IN AN ADVISER?
24
DO CLIENTS KNOW & UNDERSTAND
THEIR PENSION OPTIONS?
27
35
FOREWORD
The Retail Distribution Review (RDR) was enacted by the financial services regulator to
protect consumers; to bring confidence and trust at a time when they need more help
and advice than ever with their retirement and investment planning.
In one fell swoop this new legislation dramatically changed the landscape for advice and product provision in
the UK. All firms took action to comply with the new regime, from large product providers to small ‘one man
band’ advisers, investing time, money and resources - did RDR impact the consumer it was intended to protect?
This report looks at the consumer journey from the implementation of RDR to the introduction of pension
freedoms. It will benefit thoughtful and engaged advisory firms, wealth managers, asset managers, professional
bodies and platform providers who are seeking to get under the bonnet of the current attitudes of retail investors,
both advised and transactional. Our findings shed light on investors' behavioural changes and how they view the
many associated issues such as the pension options available to them, charging, pricing and technology, as well as
how they source financial advice and are likely to do so in the future.
We asked retail investors about their propensity to ‘DIY’ versus taking advice and whether they feel comfortable
transacting online directly via a retail platform. The research also uncovered the aspects of their financial affairs
where they will seek professional advice and the criteria they use when selecting an adviser to work with.
The result is a fair and useful picture of the market from the perspective of the retail investor. We hope you find
these insights to be of value.
Lee Robertson
Abbie Tanner
Partner
Partner
Gliocas Consulting
Gliocas Consulting
ABOUT GLIOCAS CONSULTING
Gliocas Consulting was formed to deliver unique, relevant and actionable insight into the issues
faced by financial advisers, wealth managers, platforms and asset managers when designing
services for the investing public. Our sole focus therefore is on the financial services profession
and how it interacts with retail clients.
The Principals at Gliocas Consulting intimately understand the dynamics of the industry and have access to
a research system which enables them to gather actionable information and genuine insight via in-depth
consumer surveys.
Our team keep up to date with regulatory, compliance and legislative requirements. They also have
significant market knowledge and are supported by an Advisory Board comprising senior industry
practitioners from within wealth management, asset management, private banking and investment
banking. The Advisory Board members have been hand selected to offer perspectives that cut across all
disciplines and kindly give their time to ensure robust research and insights are delivered.
ACTIONABLE INTELLIGENCE
We strive to deliver content that is relevant to your operation and also delivers thought-provoking and
Actionable Intelligence to ensure you are able to better understand the views of the investing public.
At all times we will work within our core values of;
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Professional Integrity
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Confidentiality
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Behavioural Flexibility
By working to these principles you will find that we are responsive and easy to deal with. Our team tackle
all projects with enthusiasm and a commitment to excellence - we aim to be viewed as a resource for your
business as opposed to a cost.
Example of our work
The team at Gliocas Consulting have been commissioned to undertake a
bespoke research study for a well known provider. The mandate includes
a survey of the company’s existing retail clients, as well as non-clients in
the target market and financial planners who distribute their products.
NEXT RESEARCH PAPER IN SERIES
Client Suitability Conundrum
The next paper in this series will be available for download in February 2015.
Register your interest online at www.gliocasconsulting.com
RANGE OF SERVICES
Together with our Advisory Board of exceptional individuals we have the ability
to deliver bespoke, innovative and cost-effective solutions for our clients.
Our range of services uniquely consider the market from three perspectives - the client,
provider and adviser - and include:
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One-off research projects surveying retail consumers or your own client base;
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Consultancy, across a range of business and market issues;
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Speakers for events of all sizes; and
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Contribution to financial services forums and round-tables.
Bespoke research, bringing together the client, provider and adviser
CLIENT
No matter what our research requirements, we can undertake a bespoke study
to meet your needs. We have unrivalled access to a demographically diverse
panel of more than 10 million consumers, geographically distributed right across the
globe. Alternatively, we can use our technology, research methodology and insight to
survey your own client bank or a comparative survey that contrasts the view of our panel
and your own clients.
To discuss your specific needs please contact us on +44 (0) 20 3440 3915 or
via email to [email protected]
PROVIDER
ADVISER