| There are quite a few factors to consider | | | | there are a few less considerations to take into |
| 1. Dumfries and Galloway has a growing private and | | | | account and the risk and value of the product class |
| public sector debt. | | | | has already been determined by a very highly paid |
| 2. There is a glut of houses for sale in the region | | | | actuary and his great big computer. |
| reducing growth in house prices and still lower by | | | | Unemployment will be a major factor as clients will be |
| approx 10% from 2 years ago. | | | | joining the workforce later due to high youth |
| 3. There is an aging population and an ever growing | | | | unemployment to income nothing to pay for advice |
| average age as more people retire to the region and | | | | with. |
| bright young talent migrates from the region. | | | | The fact that related services have charged fees for |
| 4. Unemployment is at it's highest for quite some | | | | some time doesn't mean that people are happy |
| time especially with the young. | | | | about paying for the advise. The major difference is |
| 5. There are fees for other professional services and | | | | that although you might not want to pay a lawyer |
| people are used to paying accountants and lawyers. | | | | you cannot do the work yourself. You can arrange |
| Growing public and private sector debt will certainly | | | | insurance yourself or a mortgage or any other more |
| cause the vast majority of households to make | | | | technical advice yourself it might not be easy but it |
| cutbacks. Fees of £50+ per hour will be avoided | | | | will be legal. There is also an ever growing do it |
| and removed from most budgets if possible. | | | | yourself literature and even though it won't compare |
| The housing prices stalling is good news for financial | | | | to sitting down with an expert it's there and it's not |
| advice as a whole because the first step for most | | | | going anywhere anytime soon. |
| with regards financial awareness is the vast | | | | So will financial advice in Dumfries and Galloway |
| differences in the mortgage market and the vast | | | | decrease with the removal of commisson as people |
| terminology used in describing products, for example: | | | | in the region try to make their own |
| CAPPED - won't ever go over a certain level | | | | savings,investment and debt reduction descissions? |
| FIXED - will stay at a certain level | | | | With the removal of commision from the sector to |
| TRACKER - will stay in line with a base rate for | | | | be enforced by 2012 announced today by the |
| example the Bank of England base rate. | | | | financial services authority. It is unlikely that many |
| The aging demographic in itself will change the type | | | | peole in Dumfries and Galloway will pay £50+ an |
| of advice that is required for a 60 year old is unlikely | | | | hour or a flat rate of £200 for consultation or |
| to be buying a house with a mortgae but much more | | | | advice. Where commission hid these fees and many |
| likely to be looking at retirement annuities. With the | | | | paid upto five times more without realising. The |
| growth of discount brokers available this is likely to | | | | removal move jobs out of the region with financial |
| be a segment that will be targeted UK wide by | | | | advice being offered remotely or at reduced fees, or |
| discount brokers at reduced fees. The reason being | | | | possibly even fee free by other service providers. |