There has been a ‘significant uptick’ in the number of advised clients feeling pleased with their adviser has risen over the past 12 months for the second year in a row, new research from Royal London has revealed.
According to its “Meaning of Value 2024” report, the number of clients who say they receive ‘good’ or ‘excellent’ value for money from their adviser has risen by more than a fifth from 54% in 2023 to 66% in 2024.
Overall, 74% said their satisfaction levels range from good to very satisfied.
However, Royal London said advisers have a tricky balance to strike between tangible and intangible benefits with clients valuing both tangible measures such as investment returns and intangible factors such as peace of mind and sense of security.
The research highlighted the disparity between how clients and advisers view investment performance. Nearly half (45%) of clients described investment performance as the most important factor when assessing overall value for money, but only a quarter (24%) of advisers believe it has a big impact.
The pensions and investment provider said that when looking at the overarching important factors when choosing the best financial services provider for their needs, clients and advisers were aligned Both agree service is the leading priority, with clients expecting good service from a provider they can trust with good investment returns all at a competitive price.
Jamie Jenkins, director of policy and comms at Royal London, said: “It’s encouraging that we and the wider sector are looking at value in a new light and continue to make strides in the right direction.
“Inevitably, there are still some persistent concerns among advisers as to how best to measure value, and to demonstrate this in a way that satisfies the requirements of the regulator. However, it appears that many advice firms have been reassessing their client proposition. This could be driven by a number of factors including the introduction of the Consumer Duty or the regulator’s review of ongoing advice services, but it’s clear that something is working, as there is a significant uptick in client satisfaction.”
As the FCA moves ahead with the Advice Guidance Boundary Review, Jenkins said he hopes more consumers can be provided with “meaningful guidance”, ultimately leading to an increased number of people seeking advice when the time is right.
Mike Barrett, consulting director at the lang cat, added: “Our annual research into The Advice Gap has consistently highlighted somewhat of a paradox, whereby those who pay for advice are more than happy it represents good value, yet those who are not believe it won’t be. Our work with Royal London highlights this first point. The advice profession is consistently delivering good value to their clients, and those who are lucky enough to benefit from advice are almost always satisfied with the outcomes they are receiving.”
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