Clients of financial advisers are better protected against financial crime, according to wealth management group Saltus.
The Saltus Wealth Index, which surveyed more than 1,000 people in the UK with investable assets over £250,000, found that 49% of all respondents had fallen victim to a financial scam. However, Saltus said that advisers would be able to flag to clients when something was “too good to be true” and help clients to better protect their assets against fraudsters.
Amongst those with assets of between £250,000 and £500,000, just over a third (36%) said they have been targeted by financial crime, with this figure rising to more than half (53%) of those with between £1 million and £2 million.
The research found that crime was even higher among people with the greatest assets, standing at 66% of those with assets of between £2 million and £3 million and 65% for those with £3 million or more.
In terms of age groups, those aged between 35 and 44 were most likely to report that they had been targeted with 57% affected, compared to 48% of millennials, 31% of 55-64s and just 18% of over-65s.
Mike Stimpson, partner at Saltus, said: “We all know that professional advice can help you achieve your financial goals, but one of the lesser known – but hugely important – benefits of having a financial adviser is that they can also help protect you from falling victim to financial crime.
“We can see that people aged between 35 and 44 are most likely to have reported being scammed. While this study focuses on reported crime and so we cannot definitively conclude that this age group is actively targeted by criminals, logic suggests that those starting to think about what they might do when they can access their pension could be more at risk as fraudsters see an opportunity to scam people out of their pension pot.”
Stimpson added: “As a general rule, it is best to ignore – or ideally, report – any unsolicited contact as a genuine financial adviser would not cold call about a specific investment opportunity. Any unconventional commission arrangements should also raise a red flag.”
Having a long-term relationship with a financial adviser, he said, can give individuals “real peace of mind”, not only that they are making their money work for them, but also that their adviser has their back when it comes to protecting their wealth.
“Financial advisers know the markets, they know when something is too good to be true and they have [their clients’] best interests at heart and ultimately, this means they are [the] best line of defence when it comes to financial scams.”
