"Providers must allow tax deductible advice" "Providers must allow tax deductible advice"

28 Sep 2017 Ken Davy

Knock, knock. Are you there? More importantly, are you listening?
I ask this question because of the enormous opportunities the current market is presenting for each and every adviser, whether working within a large firm or a one-person practice, as an independent adviser or restricted.

In my 50 years in financial services I find it hard to recall a time when the opportunities for advisers were greater than they are today.

Firstly, we all know that the desperate need for financial advice has always existed; however, what we are now experiencing is a real demand from consumers as they increasingly recognise their need for advice.

We all know that the desperate need for financial advice has always existed 
This is reinforced by such examples as the recent ILC-UK survey, which showed that consumers who are professionally advised are, on average, £40,000 better off at retirement than those without advice.

This difference spanned all income groups and covered a period of less than 10 years. Imagine the enormous benefit to be gained by extending this advantage over a person’s working lifetime.

Secondly, there is increased recognition, in the media and politically, of the real value to consumers of regulated financial advice. Most of the cynicism and criticism that used to emanate from these quarters has disappeared.

Even the debates that have raged over the differences between non-regulated guidance and regulated advice have, almost by accident, reinforced the awareness of regulated advice and the consumer protection it provides.  

Lastly, the Finance Bill has reinstated the proposal that consumers can use up to £500 per year from their pension fund for up to three years to pay for advice. I believe the importance and value of this government initiative has been virtually ignored by advisers.

Comments from some advisers suggesting “that £1,500 will not pay for much advice” completely overlook how psychologically important this will be, especially for younger consumers for whom the value of saving early cannot be overstated. What is needed now is for pension providers and trustees to ensure that accessing this cash is made quick and administratively simple.

Doubtlessly, consumers will then save more, much earlier than they would otherwise.  

The bottom line is that every consumer now has the potential to benefit from tax deductible financial advice. I hope you are listening, because opportunity is knocking.

Ken Davy is group chairman of SimplyBiz


Testimonials

"I wanted to put on the record how grateful we are for the support, advice and help we have received from our application manager, Tim Prest, and all the team at SimplyBiz.  If we've ever made one absolutely, 100% correct business decision, never to be questioned or re-considered (even with the benefit of hindsight) - employing the services of your firm would be it!"

Chris Lee
Lee Financial Planning

Read More

Latest News

"How turning a blind eye got us to where we are now"

July 18, 2018

It was not many years ago when it became virtually impossible for anyone to obtain PI cover at a reasonable premium. Such was the crisis that the then regulator, the FSA, turned a blind eye to the fact that over a thousand firms were trading without PI insurance.

Read more >

How to help clients create a lasting power of attorney - CPD article

July 16, 2018

Buzz Aldrin’s recent decision to sue his family for mismanagement of his finances has, quite rightly, reminded advisers across the pond that those appointed to make decisions on a client’s behalf need to be selected with the utmost care.

Read more >

Global markets are set up for stock pickers, say industry heavyweights at SimplyBiz Group Advice Show

July 10, 2018

Geopolitical changes are creating the ideal investment environment for stock pickers, according to industry experts speaking at the most recent Advice Show.

Read more >

"Hello, have you been mis-sold an accident claim?"

July 05, 2018

I am sure you will have been delighted to note that, at long last, the Financial Conduct Authority (FCA) is going to formally regulate the ambulance chasers.

Read more >