Others were quick to point out different, but similar, threats to the future adviser client bank.
Mike Barrett, consultant at the Lang Cat, pointed to Hargreaves Lansdown’s recent interim results, which showed the average age of clients had dropped from 45 to 37 and that the platform had attracted 40,000 new clients in the 30 to 54 age range in the last six months.
He said: “That is an extraordinary number. It remains to be seen whether these clients will move to the advised channel if their needs become more complex, but with Hargreaves reporting a client retention rate of above 90 per cent, these clients might need a lot of convincing to move.”
But for Scott Gallacher, director at Rowley Turton, this was simply another case of “predicting the death of the IFA” when the simple fact was, consumers like face-to-face.
Gallacher said: “We’ve been here before. Every man and his dog has tried to capture the main market, but they don’t necessarily build up long-term client loyalty and then, as people’s pensions grow, people start to worry if they are doing everything they should.
“I’ve yet to see a replacement for being able to talk to someone and go through finances, dreams, aspirations and give one-to-one advice. People ultimately still trust people.”
He added that consolidators actually made it easier for advisers who were able to start working with clients with already consolidated pension pots. It was also a good thing for advice if people started to save more and build bigger pensions.
Gallacher added: “From our perspective, I’m not too concerned. The death of the IFA has been touted for as long as I’ve been around — whatever it is, there is always a reason we won’t exist.”
Bamford agreed. He said that while technology would undoubtedly play a big role in serving the market, he was confident consumers would turn to human advisers when the time is right.
imogen.tew@ft.com
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