Deloitte has issued another warning on the possible unintended consequences of the UK regulator's Retail Distribution Review, predicting that after its implementation a third of consumers will opt for do-it-yourself financial planning to avoid paying advisor fees.

Having polled 2,000 UK residents, the consultancy found that 32 per cent are likely to go the DIY route for financial planning and investment product research. Having chosen investment products themselves, 27 per cent of respondents said that they would go direct to the provider – cutting out the advisor as the “middle man”. Deloitte therefore predicts an upsurge in direct-to-consumer offerings from investment product providers.

More disturbingly, despite the fact that a third of consumers are likely to go DIY post-RDR, just 31 per cent of those polled by Deloitte feel confident that they are knowledgeable enough to choose the right financial products for their needs.

While lower-end consumers may well be tempted to go DIY in order to avoid paying upfront advisor fees post-RDR, wealth managers can take comfort from the fact that Deloitte predicts that the affluent still likely to call on professional advice because of the larger sums of money involved.

Deloitte has been among the most vocal of commentators predicting that consumers may lose out post-RDR; it recently warned for example that 5.5 million people in the UK could fall into an “advice gap” after the reform package’s implementation on 31 December, due to the fact that they are unwilling or unable to pay advisor fees.

While the extent to which the RDR will hurt lower-end consumers remains to be seen, the ban on commission payments in favour of fees is intended to up the objectivity and transparency of financial advice, and has been broadly welcomed by the industry. What arguably now needs to be impressed upon consumers is that advisor fees can represent good value for money.