IFAs Confident In UK Coalition
Friday, May 28, 2010

The majority of the UK's independent financial advisers are confident that the Conservative/Liberal coalition government is good news for the industry, but many think that there are still some uncertainties ahead for investors, according to a survey by Sun Life Financial, Canada.

The survey shows that 61% of IFAs are optimistic that the coalition government is good for the adviser market, although one-quarter of the respondents said that the parties' policies differed too much to be positive for the industry. Just 5% of IFAs considered the coalition to be ‘very bad news’ for the industry.

On a broad level, confidence is high that the coalition will guide the country through the recovery, with 49% of IFAs slightly optimistic and 14% very optimistic. However, when measuring IFA optimism on specific policy areas, views become more mixed:

• On regulation and enforcement 39% are optimistic that the coalition will serve the industry well;
• In terms of taxation, 38% of IFAs feel pessimistic that the Con-Lib partnership with deliver what the industry needs; and
• Despite an overall sense of optimism that the coalition is good for the adviser market, 32% of IFAs remain ambivalent towards it assisting them as a community.

Mark Stopard of Sun Life Financial of Canada said:

“This barometer of IFA views shows that at first glance, the coalition government appears to have been broadly welcomed with optimism by the IFA market, which is perhaps surprising given the initial concern [expressed pre-election].”

“When we drilled down to measure how the coalition would deliver on specific areas, views were more divided. To see such support on regulation and enforcement at this early stage is particularly pleasing.”

“Already we have seen a number of proposed changes that will have a significant impact to advisers and their clients and I’m sure they will be staying close to the events of the next few weeks as policies are developed in more detail.”

“With the outdated compulsory annuitisation age already under review, and plans to restore the earnings link to state pensions, steps are already being taken in the right direction. It will be interesting to measure if and how views change after the emergency budget is delivered in June."