‘Investors not satisfied with lack of commitment from providers’
Wednesday 8th April 2015
Written by Conor Shilling
Investors are not satisfied that their pension and investment providers are committed to supporting the new financial freedoms which came into effect this week, according to research by DIY investment platform TD Direct Investing.
The firm found that 80% of respondents it surveyed have been discouraged from moving their accounts, with 43% citing high exit fees and 37% blaming the unclear switching process as the main reasons.
The findings highlighted an increasing lack of trust with over two thirds (69%) of investors detailing unclear rates and charges as the primary factor.
The end of the previous tax year saw a large percentage of savers take the opportunity to maximise their ISA allowance before the financial year end and TD Direct’s figures from 2014 showed 84% week-on-week uplift in new ISA accounts opened and 50% increase in trades. It says it is expecting similar response in 2015.
Carl Howard, Commercial Director, TD Direct Investing commented: “This feedback from investors continues to highlight the fact that providers simply aren’t responding quickly enough to customers’ needs. Abolishing exit fees and supporting the switching process are essential to ensuring that the pension reforms the Government has devised work in the best interest of UK investors and savers.”
“It’s encouraging to see that the reforms have got people thinking about taking control of their own financial futures. However, now that the government and regulator have taken measures to bolster trust, it is up to the industry to go one step further,” he added.
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Editorial Contact Details - Conor Shilling
conor.shilling@angelsmedia.co.uk
Editorial Contact Details - Conor Shilling
conor.shilling@angelsmedia.co.uk
0845 672 6000
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