Nearly half (46%) of investors said it was honesty from their financial adviser that gave them confidence in the advice they received, according to a new report by AFH Wealth Management.
 
For two fifths (41%) of investors their adviser’s familiarity with their financial situation was what gave them confidence, while 37% said it was previous performance and 36% believed it was maintaining open lines of communication.

AFH said it was “clear that investors value a personal touch when it comes to managing their investments”. 
 
The firm said that since the financial crash 10 years ago, there has “undoubtedly been a shift in consumer behaviour|”.

Nearly a third (32%) of investors now recognised the value of financial advice more.

However, one in eight (16%) said they did not trust financial advisers but understood that they needed them and 12% said they were more involved in their financial decision-making because they do not trust their advisers.
 
Yet the need for advisers to demonstrate good value for money wassail to be crucial as their clients were not afraid to look elsewhere.

Over three quarters (77%) of investors admitted they would switch financial adviser if they felt they were not receiving value for money, with 16% already having done so.

Just 7% of investors said they were loyal to their current adviser and only 5% thought it would be too much hassle to switch.
 
Alan Hudson, CEO of AFH Wealth Management, said: “In order to demonstrate the value of proper advice, it is crucial that advisers understand exactly what investors want. Top of this list is honesty, be it about fees, charges or investment performance.
 
“As investors become increasingly discerning with a greater propensity to switch and new advice models enter the market, the value and effectiveness of face-to-face advice will continue to be challenged.

“We, as an industry, must demonstrate value and give investors confidence in the actions we take and decisions we make.”